ECONOMYNEXT – Sri Lanka is to start more than 200 projects funded by creditors that had been halted when it declared bankruptcy, State Minister for Finance Shehan Semasinghe said yesterday (14).
“Work on more than 200 projects funded by foreign loan assistance that were halted halfway are to be restarted in the first quarter next year,” Semasinghe said at a news conference held at the Presidential Media Centre (PMC).
Semasinghe was speaking after the announcement of the second tranche of the International Monetary Fund (IMF).
Since Sri Lanka declared bankruptcy last year, loan and grant programs by international creditors, spanning a variety of sectors, had been halted.
Read more: Japan halts 12 JAICA projects in Sri Lanka until IMF provides roadmap: minister
The minister pointed out that the role of its key multilateral creditors were crucial. “A few months ago, our country was in a very difficult economic situation. Looking at the economic situation then and now, it was the International Monetary Fund that helped make it possible,” Semasinghe said.
He expressed hope for similar cooperation from the World Bank and the Asian Development Bank.
Sri Lanka’s President Ranil Wickremesinghe has also said that the country looks forward to getting its bilateral creditors on board with restarting suspended loan programs, on Wednesday (13) during his closing budget speech.
He said that the aid of multilateral and bilateral creditors such as the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) provide “far more funding for development, with low interest rates and beneficial conditions.”
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Sri Lanka’s next step is to get bilateral creditors to restart loan programs: President
On December 12, the IMF Board facilitated the country access to SDR 254 million (337 million dollars) and said that Sri Lankan authorities have shown effort to “progress toward restoring debt sustainability”, raising revenue, rebuilding reserves buffers, reducing inflation, and safeguarding financial stability.
During an interview in November with Journalist Palki Sharma, President Ranil Wickremesinghe said that China’s role as a bilateral creditor was crucial for Sri Lanka, as a developing nation.
He said that a developing country like Sri Lanka depends on a cycle of investments that come in from China and Japan, in order to politically and economically move ahead with the times. (Colombo/Dec15/2023)