India, IMF Pledge To Support Sri Lanka In Economic Crisis

The International Monetary Fund (IMF) and India will support Sri Lanka in the economic crisis that has gripped the country, Sri Lankan Finance Ministry said on Tuesday.

On Monday, Sri Lankan Finance Minister Ali Sabry met with IMF Managing Director Kristalina Georgieva and Indian Finance Minister Nirmala Sitharaman in Washington.

“The IMF has commended on the steps already taken by the Finance Minister to mitigate the financial situation in Sri Lanka. IMF has assured their fullest support to Sri Lanka and a positive response has also been received to expedite the process to strengthen the support extended towards Sri Lanka,” the ministry said in a statement.

Sabry has requested a Rapid Financing Instrument (RFI) from the IMF, with the organization promising to consider the request even though it does not meet the standard circumstances for issuing an RFI, according to the ministry.

India has also appealed to the IMF on behalf of Sri Lanka, according to the statement. Sitharaman further affirmed to Sabry that India will support the Sri Lankan request to speed up an Extended Fund Facility from IMF.

“Sitharaman has assured Minister Ali Sabry on India’s fullest support to Sri Lanka to move forward and has emphasized on India’s commitment to strengthen the development of the economy in Sri Lanka and building stronger bonds between the two Nations as they move forward together,” the statement noted.

Sri Lanka is now facing its worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by a clampdown on tourism during the COVID-19 pandemic. It left the country unable to buy enough fuel, with people facing an acute scarcity of food and basic necessities, heating fuel, and gas. (ANI/Sputnik)