Colombo: Sri Lanka needs $3 billion to $4 billion this year to come out of the unprecedented economic crisis and plans to start talks with the International Monetary Fund for help, Finance Minister Ali Sabri said.
The country is looking to make a “decent case” before International Monetary Fund To help keep the economy afloat, he said in an interview to Bloomberg Television’s Yvonne Mann and David Ingalls. Sabri said talks are set to begin in Washington on April 18 and he expects emergency relief funds to be available a week later if things go well.
“Our appeal to them is to release it at the earliest,” Sabri said. RajapaksaThe government of the U.S. still enjoys a majority in the parliament and therefore has the right to associate with the lender. Sabri indicated that some of the funds the country wants will come from lenders and governments other than the IMF, but did not provide a breakdown.
Sabri, along with newly appointed central bank governor Nandlal Weerasinghe, is a key member of Rajapaksa’s team for bailout talks with the IMF. The funds are critical to the success of the debt restructuring process the island nation launched this week after suspending some outstanding loans and interest payments.
Sabri also sought to reassure investors of the country’s intention to repay the loan.
“We have said very clearly across the board that we will honor our debt,” he said. “There’s commitment, there’s desire, but we don’t have the funds to deliver immediately.”
The IMF’s involvement should aid negotiations with bond holders, Citigroup Global Markets analysts Donato Guarino and Johanna Chua wrote in a note to clients. They see that Sri Lanka is asking investors to cut 50% on interest payments and 20% on principal, with an exit yield of 11%.
Sabri said Sri Lanka is looking at bridge financing options, and is confident it can get assistance from countries including China and India. He said this effort would be accompanied by fiscal reforms to reduce expenditure and increase revenue.
Between the shortage of everything from fuel to food and power cuts for 13 hours, troubled citizens took to the streets demanding the President’s demand for double-digit inflation. Gotabaya RajapakseEvicted as well as his brother, Prime Minister Mahinda Rajapakse,
President Rajapaksa, using a customary greeting to the nation ahead of a local New Year celebration on Thursday, appealed for “unity and better understanding” as protests in front of his secretariat in the central business district entered its sixth day.
Rajapaksa had said, “The government is understanding these challenges properly and is taking measures to secure the normal life of the people from the current complex situation.”
The country is looking to make a “decent case” before International Monetary Fund To help keep the economy afloat, he said in an interview to Bloomberg Television’s Yvonne Mann and David Ingalls. Sabri said talks are set to begin in Washington on April 18 and he expects emergency relief funds to be available a week later if things go well.
“Our appeal to them is to release it at the earliest,” Sabri said. RajapaksaThe government of the U.S. still enjoys a majority in the parliament and therefore has the right to associate with the lender. Sabri indicated that some of the funds the country wants will come from lenders and governments other than the IMF, but did not provide a breakdown.
Sabri, along with newly appointed central bank governor Nandlal Weerasinghe, is a key member of Rajapaksa’s team for bailout talks with the IMF. The funds are critical to the success of the debt restructuring process the island nation launched this week after suspending some outstanding loans and interest payments.
Sabri also sought to reassure investors of the country’s intention to repay the loan.
“We have said very clearly across the board that we will honor our debt,” he said. “There’s commitment, there’s desire, but we don’t have the funds to deliver immediately.”
The IMF’s involvement should aid negotiations with bond holders, Citigroup Global Markets analysts Donato Guarino and Johanna Chua wrote in a note to clients. They see that Sri Lanka is asking investors to cut 50% on interest payments and 20% on principal, with an exit yield of 11%.
Sabri said Sri Lanka is looking at bridge financing options, and is confident it can get assistance from countries including China and India. He said this effort would be accompanied by fiscal reforms to reduce expenditure and increase revenue.
Between the shortage of everything from fuel to food and power cuts for 13 hours, troubled citizens took to the streets demanding the President’s demand for double-digit inflation. Gotabaya RajapakseEvicted as well as his brother, Prime Minister Mahinda Rajapakse,
President Rajapaksa, using a customary greeting to the nation ahead of a local New Year celebration on Thursday, appealed for “unity and better understanding” as protests in front of his secretariat in the central business district entered its sixth day.
Rajapaksa had said, “The government is understanding these challenges properly and is taking measures to secure the normal life of the people from the current complex situation.”