Sri Lankan President Ranil Wickremesinghe stated that he is expecting a staff-level agreement with the International Monetary Fund (IMF) in late August and approval of the executive board in September.
President Wickremesinghe expressed these ideas during a meeting with local government officials in Kandy. “My aim was to get into an agreement by July and get Executive Board approval by the first week of August. Now it will delay to the end of August. Because after the first week there is a holiday. Then we can approve only in September,” he stated further.
The IMF has stated that no dates have been announced yet, and further stated that progress in the field of debt-restructuring will have to be made.
When questioned on the progress of the process, the Ministry of Finance stated that Sri Lanka’s debt advisors are currently analyzing creditors and debt. Following analytics, Sri Lanka will have to start negotiations with creditors.
IMF support comes after ending unsustainable credit and central bank injections with rate hikes, which will allow for the capital provided to be invested in US debt and stored as reserves. However, Sri Lanka’s money printing is still at excessive levels, creating forex shortages.
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