Sri Lanka seeks up to $4 bn ahead of IMF talks; Pak to name finance chief

The island nation is looking at making a "decent case" before the International Monetary Fund to help preserve the economy, Finance Minister Sabry said

Sri Lanka needs between $3 billion to $4 billion this year to pull itself out of an unprecedented economic crisis, Finance Minister Ali Sabry said as Pakistan’s new government was said to have selected Miftah Ismail as the new finance chief ahead of crucial talks with the International Monetary Fund.
 

The island nation is looking at making a “decent case” before the International Monetary Fund to help preserve the economy, Sabry said in an interview to Bloomberg Television. He said talks were scheduled to begin in Washington on April 18 and he expected emergency relief funds a week later, if things go well.
 

“Our appeal to them is to release it as soon as possible,” Sabry said. He indicated some funds the nation is seeking will come from other lenders and governments besides the IMF, but didn’t provide a breakdown. 
 

Sabry, along with newly appointed central bank Governor Nandalal Weerasinghe, is a key member of President Gotabaya Rajapaksa’s team for bailout talks with the IMF. Sabry also sought to reassure investors of the nation’s intent to repay loans.

“What we have very categorically stated, across the board, is that we will honor our debt,”he said. “The commitment is there, the desire is there, but we don’t immediately have the funds to disburse.”
 

In Pakistan, Prime Minister Shehbaz Sharif who took charge on Monday may name Ismail, who is a former finance minister, along with the rest of the cabinet within 24 hours, said sources. The government, formed through an alliance of multiple political parties, is still in discussions to distribute portfolios, said the people. 
 

Ismail will be among the officials responsible for negotiating with the IMF to resume a programme that went into jeopardy after former Prime Minister Imran Khan unexpectedly decreased energy prices, despite an agreement with the lender for the opposite. 
 

Pakistan plans to work with the IMF to stabilise the economy, Ismail had told Bloomberg News on April 12.