The International Monetary Fund (IMF) asked for a guarantee before disbursing the loan to Sri Lanka.
According to foreign media, the statement issued by the IMF said that it needs adequate assurance from the lender to prepare a new loan program for Sri Lanka.
The IMF said that the purpose of our team’s early visit to Sri Lanka is to make progress on the staff-level agreement and to support the Sri Lankan nation through an aid package soon.
According to the IMF, its team will visit Colombo between August 24 and 31 in connection with the agreement with Sri Lanka.
The IMF says that Sri Lanka’s government debt is considered unsustainable and therefore an adequate assurance from the country’s creditors is necessary for the approval of the IMF’s Executive Board, after which the IMF Sri Lanka The loan will restore the program.
According to the news agency Reuters, Sri Lanka will soon discuss the revival of the loan program with Japan, China and India.
According to the Sri Lankan President, negotiations are underway for a $2-3 billion loan from the IMF and his government is working on an interim budget in September with IMF approval.
