The executive board of the International Monetary Fund is not expected to formally approve Sri Lanka\u2019s $2.9 billion bailout before year-end, a key step required for the embattled country to receive funding, two sources familiar with the matter said.<\/p>\n
Seeking a way out of its worst economic crisis in decades, Sri Lanka reached an IMF staff-level agreement in June with the deal subject to approval and contingent on Sri Lanka authorities following through with previously agreed measures.<\/p>\n
Sri Lanka said in September it expected the board to approve the deal by year-end. Progress has been slow in recent months, and Sri Lanka\u2019s finance minister acknowledged last month the request might extend into January.<\/p>\n
Sri Lanka has to secure prior financing assurances from creditors, put its heavy debt burden on a sustainable path and increase public revenue before the global lender will disburse the funds. The IMF stressed the importance of joint talks involving three of Sri Lanka\u2019s main bilateral creditors – China, Japan and India.<\/p>\n
The IMF\u2019s online board calendar, which has added meetings through Dec. 22 to discuss progress and new tranches for a number of emerging economies, makes no mention of Sri Lanka.<\/p>\n
In response to an inquiry, Sri Lanka\u2019s finance ministry said it was \u201c100% focused\u201d on securing IMF approval.<\/p>\n
\u201cWe are taking every necessary policy step to secure financing assurances from our bilateral creditors as quickly as possible,\u201d the ministry said in an emailed statement.<\/p>\n
IMF officials for Sri Lanka said in emailed comments to Reuters it was \u201cdifficult to predict the timeline for the Board approval, as the process of debt discussions takes time.\u201d<\/p>\n
Sri Lanka said in October it aimed to nearly double its tax revenue to around 15% of gross domestic product by 2026 from 8.5% now – one essential step to unlock IMF funding.<\/p>\n
Source: Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"
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