Sri Lanka expects $ 4 billion in IMF talks starting next week

Sri Lanka needs between $3 billion to $4 billion this year to pull itself out of an unprecedented economic crisis and plans to start talks with the International Monetary Fund for help, Finance Minister Ali Sabry said.

Sabry said talks are scheduled to begin in Washington on April 18 and he expects emergency relief funds a week later, if things go well. “Our appeal to them is to release it as soon as possible,” Sabry said, adding that the President Gotabaya Rajapaksa’s government still enjoys majority in Parliament and hence the rightful authority to engage with the lender.

Sabry indicated some funds the nation is seeking will come from other lenders and governments besides the IMF, but didn’t provide a breakdown. The funds are crucial to the success of a debt restructuring process initiated by the island nation this week after suspending some outstanding loan and interest payments.

Sri Lanka is looking at bridge financing options, and is confident it can secure aid from countries including China and India, Sabry said.