INSUBCONTINENT EXCLUSIVE:
bridge finance so it can continue essential imports.The country of 22 million people is struggling to pay for imports after a sharp drop in
foreign exchange reserves which has led to a currency devaluation and soaring inflation.Sri Lanka, which has USD 51 billion of external
credit, is working on a wider plan to secure funds to help it through its worst economic crisis, with prolonged power cuts and shortages of
fuel and medicines that have sparked nationwide protests.The government has asked some creditors to restructure its debt and also approached
China, Japan, and the Asian Development Bank amongst others for help, Ali Sabry said.India has already agreed to double an existing USD 500
million credit line for fuel and defer about USD 1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union
a programme with the International Monetary Fund (IMF)
He said talks had started on an Extended Fund Facility (EFF) but Sri Lanka was in need of USD 3 billion to USD 4 billion in bridge financing
One is to get an IMF programme going, second to secure bridge financing and third to get Sri Lanka back on a growth trajectory in a year or
with creditors in the next 10 to 15 days.Source: Reuters-Agencies
This article first appeared/also appeared in https://adaderana.lk
