According to the Co-cabinet spokesperson, Energy Minister Udaya Gammanpila, the cabinet ministers have discussed at length whether to seek assistance from the International Monetary Fund.
The proposal to seek aid from the IMF comes amidst a worsening financial crisis with record amounts of money printing, devaluation of the Sri Lankan rupee, and forex shortage. The current government has been historically against seeking aid from the IMF, but with the worsening situation, it is unlikely that Sri Lanka could get back up without some assistance.
The maiden budget presented by Finance Minister Basil Rajapakse for 2022 contained higher taxes in contrast to low liquidity & interest rates.
The forex shortage of Sri Lanka also resulted in the temporary closure of the Sapugaskanda refinery. The government stated that the refinery operation was not necessary as the rainwater accumulated is sufficient to generate electricity. Despite the claims of the Energy Minister that there will be no fuel shortage in the country, a shortage is looming over the horizons as vehicles rush to the nearest petrol stations to fill up.
The co-cabinet spokesperson noted that while an in-depth discussion on the pros and cons of IMF assistance took place, no final decision was made regarding the issue.
No.820, Mount Cresent,Malabe,Sri Lanka