IMF assessing conditions on Sri Lanka’s request

The International Monetary Fund (IMF) is assessing conditions linked to Sri Lanka’s request for a Rapid Financial Instrument (RFI), which is available to all member countries facing an urgent balance of payments.

Masahiro Nozaki, IMF Mission Chief for Sri Lanka told the Daily Mirror that the IMF is taking into account the new government’s policies. Nozaki also said the IMF is considering the efforts taken by Sri Lanka to address the daunting economic challenges posed by COVID-19.

“We continue to engage with the Sri Lankan authorities and are considering the full set of options for engagement,” Nozaki said in an emailed response to a question posed by the Daily Mirror.

IMF said in April that it was to review the current funding programme provided to Sri Lanka, after it received a letter from Sri Lanka on the IMF’s Rapid Credit Facility in view of the global coronavirus outbreak. In May, the IMF said that it had received a request from the new Sri Lankan government for emergency financial support under the RFI.

The current extended fund agreement was reached between the IMF and the former government.

A team of staff from the IMF, led by Manuela Goretti visited Colombo from January 29 to February 7, 2020 to meet with the new administration and discuss its policy agenda.(JAMILA HUSAIN)