NEW DELHI (Reuters) – Sri Lanka has resumed technological conversations with the International Financial Fund on a likely bailout following a new government took office, the finance ministry said on Friday.
Conversations with the multilateral lender started out in April beneath previous President Gotabaya Rajapaksa. The Sri Lankan governing administration hopes to protected an Extended Fund Facility (EFF) – which would be conditional on building financial reforms – to aid battle the worst economic crisis because independence in 1948.
Ranil Wickremesinghe was appointed as president after Rajapaksa was ousted on July 13 by a well known uprising subsequent months of severe shortages of fuel, foods and medicines.
Wickremesinghe, who served 6 conditions as primary minister, also hopes to restructure Sri Lanka’s personal debt.
The talks with IMF were being very productive and Sri Lanka is working with advisers to achieve consensus on a offer with lenders, the federal government claimed.
The South Asian country of 22 million has $12 billion overseas financial debt with private lenders. It defaulted on a bond payment before this 12 months and is battling to fork out for imports of primary items.
Reporting by Krishna N. Das, Nupur Anand and Uditha Jayasinghe Editing by Frank Jack Daniel and Catherine Evans