IMF express concern about the poor, vulnerable in Sri Lanka amid crisis
Colombo, May 26 (EFE).- A team from the International Monetary Fund has made “good progress” in assessing and identifying policy priorities in crisis-hit Sri Lanka, the international organization said Thursday while expressed concern over the situation of the poor and vulnerable in the crisis-hit country.
The team led by Peter Breuer and Masahiro Nozaki, during a virtual session with the Sri Lankan authorities, including Prime Minister Ranil Wickremesinghe and Central Bank Governor Nandalal Weerasinghe, held discussions on restoring the “fiscal sustainability while protecting the vulnerable and poor.”
Sri Lanka reached out to the IMF to for a bailout package as it struggles to gather sufficient foreign currency to pay for vital imports, including fuel and medicines.
Prime Minister Wickremesinghe warned that the situation in Sri Lanka could get worse.
“Rising global food and oil prices have further added to the balance of payments pressures. Inflation has accelerated driven by many factors, including the shortages of goods, fuel price increases, and currency depreciation,” the IMF said.
“In this context, we are deeply concerned about the impact of the ongoing crisis on the people, particularly the poor and vulnerable groups,” it added.
While welcoming the appointment of financial and legal advisors to initiate dialogue with the country’s creditors, the IMF stated that it will continue to monitor the “economic and political situation” to take concrete measures under an IMF-supported program to support “a timely resolution of the crisis.”
Addressing the nation, Prime Minister Wickremesinghe said that several countries like Japan has come forward to help Sri Lanka find a solution to its economic woes.
“The World Bank and the IMF have said that they will extend their support (to Sri Lanka). China has said that they like to send funds,” he said.
Moreover, the prime minister revealed that the Indian business community has promised to invest in Sri Lanka to start new businesses after the crisis ends.
“In addition to this, after we come to an agreement with the IMF, we will get a large amount of money. We need this money,” he further said.
Sri Lanka has a period of two weeks to formulate a plan for the IMF bailout. IMF officials are expected to visit Sri Lanka to observe the plan and reach an agreement with its government.
This year Sri Lanka has been hit by its worst economic crisis since gaining independence from the United Kingdom in 1948, reflected in a months-long shortage of medicines, food and fuel, and aggravated by dwindling foreign currency reserves.
Inflation hit the record 30 percent mark in April as per latest data provided by the Central Bank of Sri Lanka.
The Sri Lankan authorities have been trying to negotiate a possible bailout by the International Monetary Fund, after temporarily suspending the payment of their foreign debt in April. EFE
aw/scColombo, May 26 (EFE).- A team from the International Monetary Fund has made “good progress” in assessing and identifying policy priorities in crisis-hit Sri Lanka, the international organization said Thursday while expressed concern over the situation of the poor and vulnerable in the crisis-hit country.
The team led by Peter Breuer and Masahiro Nozaki, during a virtual session with the Sri Lankan authorities, including Prime Minister Ranil Wickremesinghe and Central Bank Governor Nandalal Weerasinghe, held discussions on restoring the “fiscal sustainability while protecting the vulnerable and poor.”
Sri Lanka reached out to the IMF to for a bailout package as it struggles to gather sufficient foreign currency to pay for vital imports, including fuel and medicines.
Prime Minister Wickremesinghe warned that the situation in Sri Lanka could get worse.
“Rising global food and oil prices have further added to the balance of payments pressures. Inflation has accelerated driven by many factors, including the shortages of goods, fuel price increases, and currency depreciation,” the IMF said.
