IMF board to consider approval of Sri Lanka's bailout package on March 20

Colombo [Sri Lanka], March 8 (ANI): The International Monetary Fund (IMF) has said that Sri Lanka has received financial assurances from all major bilateral creditors, Sri Lanka-based Daily Mirror reported. The IMF board will hold a meeting on March 20 for the consideration of approval for the State Level Agreement for financing under an Extended Fund Facility.

In a statement, IMF noted that the financial assurances from creditors paves the way for consideration of approval of the state-level agreement reached on September 1, as per the Daily Mirror report. It further stated the arrangement will support the authorities program of ambitious reforms and will help Sri Lanka emerge from the current crisis.

"Sri Lanka has now received financing assurances from all major bilateral creditors. This paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility. Approval by the Board would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank," IMF said in a statement.

According to the Daily Mirror report, IMF further stated, "The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth."

IMF Managing Director Kristalina Georgieva welcomed the progress made by Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from major creditors, including India, China and the Paris Club.

Kristalina Georgieva tweeted, "I welcome the progress made by Sri Lankan authorities in taking decisive policy actions & obtaining financing assurances from all their major creditors, incl. China, India & the Paris Club. Look forward to presenting the IMF-supported program to our Exec. Board on March 20."

On Tuesday, Deputy Ambassador of the Chinese Embassy in Colombo Hu Wei presented the financial assurance letter by the Exim Bank of China to Secretary of the Ministry of Finance Mahinda Siriwardena at the Presidential Secretariat.

Sri Lankan President's Media Division tweeted, "The Deputy Ambassador of the Chinese Embassy in Colombo Hu Wei officially presented the financial assurance letter issued by the Exim Bank of #China to the Secretary of the Ministry of Finance Mahinda Siriwardena at the Presidential Secretariat today (07)."

It further said, "Mr. Hu Wei revealed that large–scale companies are looking forward to visiting Sri Lanka in the near future to explore new #investment opportunities." 

Earlier on Monday, Sri Lankan President Ranil Wickremesinghe informed Sri Lanka's Parliament on Monday evening that China had given assurance that it would back the island country's debt restructuring.

Making a special address in Sri Lanka's Parliament, the President said that the EXIM Bank of China last night handed over a new letter of assurance pertaining to Sri Lanka's debt restructuring, according to Newswire.

He further stated that a letter of intent signed by himself and the Governor of the Central Bank of Sri Lanka was thereafter immediately handed over to the International Monetary Fund (IMF), according to Newswire.

"We have completed our responsibilities. Now, I hope the IMF will do their part by the 3rd or 4th week of this month," Sri Lankan President Wickremesinghe said. 

Ranil Wickremesinghe added that this will enable the first round of funds from the World Bank and the Asian Development Bank (ADB) to be issued to Sri Lanka. (ANI)