Crisis-hit Sri Lanka requests rapid financial assistance from IMF
The government hopes the assistance programme will help top up its reserves and attract bridge financing to pay for essential imports of basic goods amid a devastating financial crisis.
Sri Lanka has recently imposed fuel rationing in another worsening of the economic crisis that has sparked widespread demonstrations calling for President Gotabaya Rajapaksa's resignation.
Sri Lanka has asked the International Monetary Fund (IMF) for rapid financial assistance and the global lender could consider it after initial reluctance.
A delegation headed by Sri Lanka's Finance Minister Ali Sabry kicked off formal talks with the IMF in Washington on Monday for a programme the government hopes will help top up its reserves and attract bridge financing to pay for essential imports of fuel, food and medicines.
"The (foreign minister) made a request for a Rapid Financing Instrument (RFI) to mitigate the current supply chain issues, yet initially IMF of the view that it doesn’t meet their criteria," Sabry's aide Shamir Zavahir said on Twitter on Tuesday.
"However, India subsequently made representations on an RFI for (Sri Lanka) as well and IMF may consider this request due to the unique circumstances."
Sri Lanka is seeking $3 billion in the coming months from multiple sources including the IMF, the World Bank and India to stave off the crisis, Sabry told Reuters earlier this month.
READ MORE: Cash-strapped Sri Lanka rations fuel as crisis worsens
President admits mistakes
Last week, the country's central bank said it was suspending repayment on some of its foreign debt pending a restructure.
In the commercial capital Colombo, protests demanding the ouster of President Gotabaya Rajapaksa have dragged on for more than a week.
Rajapaksa acknowledged on Monday that he made mistakes that led to the country's worst economic crisis in decades and pledged to correct them.
“During the last two and a half years we have had vast challenges. The Covid-19 pandemic, as well as the debt burden, and some mistakes on our part,” Rajapaksa said.
“They need to be rectified. We have to correct them and move forward. We need to regain the trust of the people," he added.
He made the admission while speaking to 17 new Cabinet ministers he appointed on Monday as he and his powerful family seek to resolve a political crisis resulting from the country’s dire economic state.
READ MORE: Sri Lanka leader appoints new ministers, drops some relatives from cabinet
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