Sri Lanka yet to secure IMF funding: Sabry

Sri Lanka is yet to finalise the negotiations with the International Monetary Fund (IMF) which may result in more timing to secure the IMF funding.

Sri Lankan Finance Minister Ali Sabry came up with the information on Friday at a virtual press briefing with the journalists in Sri Lanka, reports Ceylon Today.

Now, Sabry is in Washington for talks with the IMF and other global bodies to obtain necessary funding for Sri Lanka, as the island nation is witnessing its worst economic crisis since after its independence in 1948.

Earlier on Wednesday, the IMF asked Sri Lanka to "restructure" its huge foreign debt before a bailout programme could be finalised as anti-government protests escalated across the island.

"When the IMF determines that a country's debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending," the Fund's country director Masahiro Nozaki said in a statement.

The IMF said talks with Sri Lanka were still at an "early stage," but it was "very concerned" about the economic situation and the hardships suffered by people, especially the poor and vulnerable.

Ali Sabry stated that discussions have been held with the World Bank, the Asian Development Bank (ADB), India and the United Nations Development Programme (UNDP) to obtain the necessary funding for Sri Lanka until it receives financial assistance from the IMF.

Accordingly, the World Bank has agreed to provide USD 300-600 million in financial assistance to Sri Lanka within four months, he said.

He said the funds would be used to import medicines, gas and fertiliser and provide relief. He also said India had agreed to provide another USD 500 million credit facility to purchase fuel.