Sri Lanka finalises negotiations with creditors before 1st review of IMF-assisted programme

Negotiation

Colombo, April 6, 2023 (Xinhua/NAN) The Governor,   Central Bank of Sri Lanka,  Nandalal Weerasinghe , says   the country can finalise negotiations with both bilateral and commercial creditors in advance of the first review of the IMF-assisted programme.

The negotiation was scheduled to take place in six months.

Addressing a meeting Wednesday night, Weerasinghe said after nearly a year of discussion, Sri Lankan authorities secured a lifeline of approximately three  billion dollars from the International Monetary Fund.

The fund was on the condition that they would stay on course with reforms over the next four years.

Sri Lanka had received the first tranche of about 330 million dollars from the IMF.

This had not only eased liquidity conditions in the domestic foreign currency market but also restored confidence among investors and other creditors, he said.

He added that, if Sri Lanka failed to remember the reason for obtaining the IMF Extended Fund Facility and reverted to the actions that led to fiscal imbalances, it would not have another opportunity to correct its mistakes.

Sri Lanka started negotiations with the international lender in 2022 after it was hit by a severe economic crisis. (Xinhua/NAN) (www.nannews.ng)

COO/CHOM
======

Edited by Cecilia Odey/Chioma Ugboma