Sri Lanka can expect IMF funding by the end of the year – CBSL Governor

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Governor of the Central Bank, Dr. Nandalal Weerasinghe says the International Monetary Fund’s payment of the Extended Fund Facility to Sri Lanka can be expected by the end of the year.

In an interview with Bloomberg, the Governor said “First part is to reach a staff-level agreement on the overall macro fiscal policy framework for the next 3-4 years and the medium-term framework, that we are coming closer to reaching an agreement on a macro fiscal framework. The second part is for us to agree and negotiate with the debt targets for us to make our medium to long term debt sustainable. We are in the process of having this discussion. Only after that basically what we can say where the debt targets, we have to meet.”

When asked when Sri Lanka will receive the funding, Weerasinghe said “This is where we think….. for an example now once we reach the staff-level agreement, then the timeline is set. Then we have to approach all our external creditors and start negotiating and discussing in good faith for us to obtain a relief on the debt service payments.”

The Governor also said that the country’s foreign exchange crisis is easing and even without any bridging financing now Sri Lanka can manage the requirement for essential imports with higher exports and curtailing imports.

“And we are managing the situation much better than what we had earlier. So, going forward we can manage the forex situation much better. We can see the currency stabilizing,” he claimed.

The full interview is available below: