IMF wants political stability in Sri Lanka to resume bailout talks

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By PTI

COLOMBO: The IMF said on Friday it was deeply concerned about the current crisis in Sri Lanka and hoped for a resolution to the current situation to resume talks on a bailout for the island nation as soon as possible.

Sri Lanka is going through a deepening political and economic crisis.

President Gotabaya Rajapaksa has resigned, and Speaker of Parliament Mahinda Yapa Abeywardenaon officially announced it on Friday, after a week of dramatic developments and massive protests against the government for its mismanagement of the economy that has bankrupted the country. .

“We hope for a resolution of the current situation which would allow the resumption of a dialogue on an IMF-supported program,” said Gerry Rice, director of the IMF’s communications department, quoted by News First Lanka. .

“”The high-level discussions with the authorities that we would need to start discussions on a program, we still hope, that these can resume as soon as possible. So, you know, trying to do whatever we can in just an extraordinarily difficult situation,” he added, Sri Lanka’s public debt is assessed as unsustainable and as is the case with all programs in the IMF, not just the case of Sri Lanka, for approval by the Executive Board, he noted.

“”And we are not at that stage, but for approval by the Board, a program would require adequate assurances on debt sustainability. So that’s what I have on this, you know, a situation that’s very concerning in Sri Lanka,’” Riz said.

Sri Lanka is going through the worst economic crisis since its independence from Britain in 1948 and needs at least $4 billion to meet the acute shortage of foreign exchange reserves.

The island nation’s inflation topped 50% in June after two years of money printing and a failed float attempt with a buy-back bond that sent the rupee slipping from 200 to 360 against the US dollar.

Sri Lanka, a country of 22 million people, is in the grip of an unprecedented economic crisis, the worst in seven decades, leaving millions struggling to buy food, medicine, fuel and other necessities.

In several major cities, including Colombo, hundreds of people are forced to queue for hours to buy fuel, sometimes clashing with police and military as they wait.

COLOMBO: The IMF said on Friday it was deeply concerned about the current crisis in Sri Lanka and hoped for a resolution to the current situation to resume talks on a bailout for the island nation as soon as possible. Sri Lanka is going through a deepening political and economic crisis. President Gotabaya Rajapaksa has resigned, and Speaker of Parliament Mahinda Yapa Abeywardenaon officially announced it on Friday, after a week of dramatic developments and massive protests against the government for its mismanagement of the economy that has bankrupted the country. . “We hope for a resolution of the current situation which would allow the resumption of a dialogue on an IMF-supported program,” said Gerry Rice, director of the IMF’s communications department, quoted by News First Lanka. . “”The high-level discussions with the authorities that we would need to start discussions on a program, we still hope, that these can resume as soon as possible. So, you know, trying to do whatever we can in just an extraordinarily difficult situation,” he added, Sri Lanka’s public debt is assessed as unsustainable and as is the case with all programs in the IMF, not just the case of Sri Lanka, for approval by the Executive Board, he noted. “”And we are not at that stage, but for approval by the Board, a program would require adequate assurances on debt sustainability. So that’s what I have on this, you know, a situation that’s very concerning in Sri Lanka,’” Rice said. Sri Lanka is going through the worst economic crisis since gaining independence from Britain in 1948 and must secure at least $4 billion to meet the acute shortage of foreign exchange reserves.The island nation’s inflation topped 50% in June after two years of money printing and a botched float attempt with a redemption requirement that caused the rupee to slide from 200 to 360 against the US dollar.Sri Lanka, a country of 22 million people, is in the grip of an unprecedented economic turmoil, the worst in seven decades, leaving millions of people struggling to buy food, medicine, fuel and other essentials.In several major cities, including Colombo, hundreds of people are forced to queue for hours to buy fuel , uh sometimes lending to the police and the army while waiting.


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