IMF says it held 'fruitful' discussions with Sri Lanka on loan request

The International Monetary Fund (IMF) on Saturday said that it held "fruitful technical discussions" with Sri Lankan authorities on the island nation's request for an IMF-supported loan program this week.

IMF Managing Director Kristalina Georgieva met a Sri Lankan delegation during the 2022 IMF and World Bank Spring Meetings in Washington, DC.

The Sri Lankan delegation was led by Finance Minister Ali Sabry and Central Bank of Sri Lanka Governor Nandalal Weerasinghe. The IMF team for Sri Lanka held initial technical discussions on an IMF-supported program with the delegation.

"During April 18-22, the Sri Lankan delegation and the IMF team had fruitful technical discussions on the authorities' request for an IMF-supported program. The discussions covered recent economic and financial developments in Sri Lanka, the need for implementing a credible and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the adverse impact of the current economic crisis on the poor and vulnerable," the IMF said in a statement.

The international lender welcomed the authorities' plan to engage in a collaborative dialogue with their creditors.

"Going forward, the IMF team will support Sri Lanka's efforts to overcome the current economic crisis by working closely with the authorities on their economic program, and by engaging with all other stakeholders in support of a timely resolution of the crisis," the statement added.

Sri Lanka has been gripped by an economic crisis considered the worst since the country gained independence in 1948. Due to energy shortages, some parts of Sri Lanka have rolling blackouts.

Sri Lanka's foreign debt is estimated at USD 51 billion.