Multilateral financial institutions agree to aid crisis-hit Sri Lanka

Colombo, Dec 6 (EFE).- Representatives from several multilateral financial institutions have agreed that a coordinated assistance program is vital for the recovery of Sri Lanka’s economy, facing its worst crisis in history, the country’s government said Tuesday.

The conclusion was reached following a meeting of representatives from the World Bank, the Asian Development Bank, the International Monetary Fund (IMF) and the Asian Infrastructure Investment Bank, according to a statement by the President’s Media Division.

“They reached the agreement following a lengthy round table discussion held today with President Ranil Wickremesignhe in Colombo where the latter presented Sri Lanka’s development program associated with the economic recovery and growth along the vision for long term development,” the statement said.

Attending the Sri Lanka Economic Summit 2022 on Monday, Wickremesinghe said that steps would be taken to introduce a “strong new economic system that can face 2050 without implementing economic reforms that offer no solutions to the current economic crisis.”

For about a year, the island nation has been experiencing its worst economic crisis since independence from the British Empire in 1948,

This period has been marked by high inflation and depleting international reserves, leading the government to negotiate a bailout with the IMF and restructuring its external debt after declaring default.

“We are now discussing with our creditors, bilateral creditors, not the Paris Club, but with India and we had very successful talks and we have started talks with China,” the president had said.

Meanwhile, the World Bank on Monday approved the crisis-hit nation’s request to get concessional financing from the International Development Association, to enable the government to run its stabilization program while protecting the most vulnerable population, the organization reported.

As the Wickremesinghe government seeks to secure new credit and assistance to restore fiscal stability in the island, protests over the harsh effects of this crisis, coupled with repression by the authorities and the arrest of activists and protesters have kept the country’s streets in constant tension.

Every day demonstrations take place calling for actions to alleviate the pressure on the citizens, who face shortage of essential supplies, daily power cuts, and very high levels of inflation. EFE

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