We stand ready to discuss options if Sri Lanka requests financial support: IMF

The International Monetary Fund (IMF) reiterates that they are standing ready to discuss options if Sri Lanka requests financial support.

Speaking to journalists at Washington DC headquarters, Gerry Rice of the Communication Department confirmed that they have not yet received a request for financial support from the Government of Sri Lanka.

“We have not received a request for financial support from Sri Lanka, from the Government of Sri Lanka. Of course, we stand ready to discuss options if requested and we continue to closely monitor economic and policy developments,” he said.

“On the debt front, I don’t have anything in detail to offer you there. As is always the case, we would be looking for all participants to play their part, as appropriate.”

He further said that they, however, had a mission that was aiming to strengthen, technical assistance mission, aiming to strengthen the macro-fiscal unit at the Ministry of Finance.

“We had a staff team from the IMF in Colombo toward the end of next year, finished up just before the end of the year; and that was related to the Article IV Consultation. Then, that, we expect to be discussed by the Executive Board in the normal way. Probably later this month towards the end of this month,” he said.

“We also, I can tell you we had a mission that was aiming to strengthen, technical assistance mission, aiming to strengthen the macro-fiscal unit at the Ministry of Finance as part of our capacity development activities. And that was conducted virtually and is just concluding almost as we speak.”

Sri Lanka’s Central Bank, however, repeats that with the realisation of expected forex inflows and the resulting build-up of international reserves, the need for initiating discussions with investors on debt restructuring does not arise, as the Government would be able to ensure the settlement of its sovereign debt without any interruption or default.

Related: Sri Lanka will settle USD 1bn ISB maturing in July; no debt restructuring needed, says CBSL

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