A delegation from the International Monetary Fund on Monday arrived in Sri Lanka for talks on a bailout program, as the government closed schools and halted all non-essential services in a bid to conserve its fast-depleting fuel reserves.
Sri Lanka is struggling with its worst economic crisis since independence in 1948, following decades of economic mismanagement and more recent policy errors, as well as a hit from the coronavirus pandemic on the country’s tourism and remittances that have shriveled its foreign reserves to record lows.
As the island nation of 22 million people struggled to pay for imports and defaulted on a multimillion-dollar foreign debt payment last month, Sri Lankans have had to endure lengthy blackouts and extreme shortages of basic necessities, including fuel and medicines.
The IMF team’s visit comes as the South Asian country seeks a bailout from the global lender, following a virtual mission that concluded in late May.
“The IMF 10-member team will be here for a period of 10 days, and the first round of talks, which lasted for two hours, was encouraging,” Shanuka Karunaratne, media director at the office of the Sri Lankan Prime Minister said.
The team — expected to conclude its visit on June 30 — would “continue discussions on an economic program that could be supported by an IMF lending arrangement,” the financial organization said in a statement.
“We reaffirm our commitment to support Sri Lanka at this difficult time, in line with the IMF’s policies.”
Sri Lanka is struggling with its worst economic crisis since independence in 1948, following decades of economic mismanagement and more recent policy errors, as well as a hit from the coronavirus pandemic on the country’s tourism and remittances that have shriveled its foreign reserves to record lows.
As the island nation of 22 million people struggled to pay for imports and defaulted on a multimillion-dollar foreign debt payment last month, Sri Lankans have had to endure lengthy blackouts and extreme shortages of basic necessities, including fuel and medicines.
The IMF team’s visit comes as the South Asian country seeks a bailout from the global lender, following a virtual mission that concluded in late May.
“The IMF 10-member team will be here for a period of 10 days, and the first round of talks, which lasted for two hours, was encouraging,” Shanuka Karunaratne, media director at the office of the Sri Lankan Prime Minister said.
The team — expected to conclude its visit on June 30 — would “continue discussions on an economic program that could be supported by an IMF lending arrangement,” the financial organization said in a statement.
“We reaffirm our commitment to support Sri Lanka at this difficult time, in line with the IMF’s policies.”
