You are here: Home » International » News » Economy
Reviewing engagement with Taliban, says US on rights violations in Afghan
Business Standard

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

IMF | sri lanka | India


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.)

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

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