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Sri Lanka says open to talks with IMF as economic situation worsens

by 198 Vietnam News
February 22, 2022
in VIETNAM EU NEWS
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“Sri Lanka has sought IMF help a number of instances previously and we’re nonetheless open to that possibility,” cupboard spokesman and Plantation Minister Ramesh Pathirana stated.

Sri Lanka’s overseas alternate reserves have plummeted to 2.36 billion USD, hitting imports of important items, together with gas, and inflation is quickening.

The island nation of twenty-two million folks additionally faces debt compensation obligations of about 4 billion USD this yr, and opposition leaders and economists are pushing the federal government to hunt help from the likes of the IMF.

“We’re preserving traces of communication open with the IMF and different multilateral lenders such because the Asian Improvement Financial institution,” Pathirana advised reporters.

Some opposition members have additionally urged the federal government to desk in parliament an upcoming IMF evaluation of the financial and monetary scenario, performed as a part of its common Article IV consultations.

“It’s important that the federal government desk this doc earlier than parliament and clearly state their plan for addressing this disaster in a sustainable method,” stated opposition member of parliament Harsha de Silva.

‘HOPE AND PRAY’

With gas shares adequate for provides for only some days, Pathirana stated the central financial institution had been directed to launch funds for gas shipments.

Sri Lanka is making an attempt to rearrange a fee of 35 million USD for a cargo of 40,000 tonnes of diesel, which might nonetheless solely meet demand for about six days.

The gas scarcity can be hitting energy provide, with the ability regulator warning of 5 to 6 hours a day of rolling energy cuts generally known as load shedding over the following few days until provides to thermal energy vegetation enhance.

Pathirana stated any additional enhance in international oil costs would make the scenario much more tough.

“We hope and pray no struggle in Ukraine as hovering oil costs will actually damage Sri Lanka,” he stated.



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Tags: economicIMFLankaopensituationSritalksworsens
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