Sri Lanka Economic Crisis: India seeks urgent IMF assistance for Lanka | India Business News

NEW DELHI: India has pitched for an urgent financial assistance from the International Monetary Fund for Sri Lanka, which has sought a $4 billion multilateral assistance in the wake of a severe economic crisis.
Finance minister Nirmala Sitharaman sought IMF support for India’s neighbour during her meeting with Kristalina Georgieva, the agency’s managing director, in Washington DC on Monday.
“The IMF MD particularly brought reference to the help India is providing to Sri Lanka during their difficult economic crisis. Smt. Sitharaman indicated that the IMF should support and urgently provide financial assistance to Sri Lanka. The MD assured the FM that the IMF would continue to actively engage with Sri Lanka,” the finance ministry said in a statement.
India’s executive director on the IMF board also represents Sri Lanka, Bangladesh and Bhutan at the multilateral agency.
Sitharaman’s meeting with the IMF chief came on the same day as her discussions with Ali Sabry, the recently appointed Sri Lankan finance minister, in Washington. “Union FM assured Sri Lanka that as a close friend and good neighbour, India will try to extend all possible cooperation and assistance to Sri Lanka,” the finance ministry tweeted late Monday evening.
Sabry is leading a team that is negotiating a bailout package from the IMF, days after Sri Lanka suspended repayment of debt, including bonds and government-to-government borrowings, pending a package. The island nation had to repay loans of $7 billion this year.
India had recently provided a $500 million assistance to help Lanka import fuel, and followed it up with a $1 billion line of credit to deal with the crisis.

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