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India commits to help Sri Lanka on debt in prospective IMF program

India has committed to help ease the debt burden of its crisis-stricken neighbor Sri Lanka as part of a possible International Monetary Fund-supported program, the IMF said on Monday

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IMF | sri lanka | India

Reuters 



Photo: Bloomberg
Photo: Bloomberg

(Reuters) - has committed to help ease the debt burden of its crisis-stricken neighbor as part of a possible Monetary Fund-supported program, the said on Monday.

The island nation of 22 million people has grappled with challenges during the past year ranging from a shortage of foreign currency to runaway inflation and a steep recession - the worst such crisis since independence from Britain in 1948.

Reuters reported last week that had told the it strongly supports Sri Lanka's debt restructuring plan as the island seeks a $2.9 billion loan from the global lender, according to a letter.

" is engaged with other official bilateral creditors to obtain similar assurances," an spokesperson said in a statement on Monday.

"As soon as adequate assurances are obtained and remaining requirements are met, including by the Sri Lankan authorities, a Fund-supported program for can be presented to the IMF's Executive Board for approval that would unlock much needed financing."

Sri Lanka requires the backing of China and - its biggest bilateral lenders - to reach a final agreement with the IMF that is essential to help the country emerge from its worst financial crisis in seven decades.

(Reporting by Andrea Shalal and Ismail Shakil; writing by Costas Pitas; editing by Tim Ahmann and Sandra Maler)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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First Published: Tue, January 24 2023. 07:38 IST

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