Sri Lanka confident of meeting conditions for IMF funding soon

Sri Lanka was optimistic about resolving its debt restructuring issues in the second quarter to secure financing from the International Monetary Fund (IMF), as external creditors are reportedly engaging positively, Bloomberg said quoting the country’s state finance minister.

“We anticipate a favourable outcome,” stated state minister Shehan Semasinghe during discussions held in London with Sri Lanka’s bondholders on the sidelines of the Boao Forum in Hainan province, China. He emphasised the significance of accessing the tranche for Sri Lanka.

Semasinghe also mentioned productive talks between Chinese leader Xi Jinping and Prime Minister Dinesh Gunawardena in Beijing, where pledges were made to strengthen ties with the Export-Import Bank of China and China Development Bank.

Last week, Sri Lanka received initial approval for a $337 million payout from the IMF, contingent on further progress in debt restructuring. Sri Lanka must finalise agreements with China ExIm and China Development Bank, along with memorandums of understanding with official creditors such as India and the Paris Club, to obtain approval for the next tranche of the $3 billion bailout.

President Ranil Wickremesinghe has expressed the nation’s intention to seek payment relief through 2027. Semasinghe indicated plans to introduce legislation to sustain reforms that have aided Sri Lanka during its economic crisis and debt default in 2022, aiming to bolster confidence in the economy among creditor nations.