Sabry says it could take weeks for Sri Lanka to recruit credit advisers

Sri Lanka may take nearly three weeks to appoint advisers to guide an overhaul of its debt, according to the country’s finance chief, a move seen as key to unlock emergency funds needed to ease its worsening economic crisis.

The country is aiming to choose financial and legal advisers in 15 to 20 days, Finance Minister Ali Sabry said in a Bloomberg Television interview with Kathleen Hays and Haidi Stroud-Watts late Wednesday in Washington. About $500 million of the total funds sought by Sri Lanka is expected to come as emergency aid from the Asian Development Bank and World Bank in the next six months, Sabry said.

The IMF has said its rapid aid depends on progress on debt restructuring, but the lender has declined to comment on what represents adequate steps toward developing a credible debt plan. A comprehensive aid package from the IMF may require about six months, Foreign Minister G.L. Peiris said earlier Wednesday in Colombo.

Sabry is in Washington with other officials seeking emergency funds during the so-called spring meetings of the IMF and World Bank.