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Tuesday September 26th, 2023

Sri Lanka asks for quick RFI from IMF, India backing for bigger EFF

ECONOMYNEXT – Sri Lanka has asked the International Monetary Fund for a quick access Rapid Finance Instrument (RFI) while India is backing the island to get a bigger Extended Fund Facility (EFF) with more reforms, a government statement said.

RFI is a low access facility with around 100 percent of quota given to countries with high capacity to implement policy reforms where as EFF will help for a long term reform with over 400 percent of the quota.

Sri Lanka does not qualify for the RFI and such funding is given for countries that do not need deep reforms.

Instead EFF comes with a long term disbursements along with reforms that are needed to put the country back into a path of sustainable growth and debts.

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The request comes as Sri Lankan delegation led by Finance Minister Ali Sabry met the IMF officials in their headquarters in Washington DC a week after the island nation suspended its foreign debt repayments citing it does not have usable foreign reserves.

“Minister of Finance has made a request for a Rapid Financing Instrument (RFI) with the IMF and IMF has subsequently informed Minister Sabry that India had also made representations on behalf of Sri Lanka for an RFI,” the Finance Ministry said in a statement.

“It had been communicated that IMF will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI.”

In Washington, Indian Finance Minister Nirmala Sitharaman and the top level Indian Economic delegation also met with Ali Sabry at the IMF Headquarters.

Sitharaman has assured Sabry on India’s fullest support to Sri Lanka to move forward and has emphasized on India’s commitment to strengthen the development of the economy in Sri Lanka.

Sitharaman has also affirmed to Minister Ali Sabry that “India will fully support the deliberations of Sri Lanka with the IMF especially on the special request made for expediting an Extended Fund Facility (EFF).” the Finance Ministry said.

If Sri Lanka goes for EFF, analysts say Sri Lanka will be able to get an up to 3 billion loan, while the RFI will see over 700 million US dollar support.

By 2025 Sri Lanka’s IMF loans would fall to around 60 percent of quota, allowing a drawdown of around 470 percent of quota at peak, in a 535 percent access program.

A recent program for Argentina, the archetypal soft-pegged defaulter, got 1200 percent quota access.

Analysts have speculated that a front loaded Stand-by or an EFF may be assigned to Sri Lanka and have suggested that given the monetary instability that had come from flexible-inflation-targeting-with-a-peg in the past a reserve money program should be followed.

(Colombo/April 19/2022)

Comments (3)

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  1. Lionel says:

    How can you reform with two idiots still in control and unelected henchman as chancellor.

  2. Maurice de Silva says:

    As long as no member of the Rajapakses touch this money, everything is going to be OK on the long run. They must keep an eye how this money is spent.

  3. Dave says:

    This is where the IMF talks take place.
    Here are two finance ministers from two neighboring countries and their financial experts.
    One finance minister took office a week ago. As the president’s personal lawyer, all his corruption allegations were subverted by fraud and later taken over by the relevant government’s Ministry of Law. He is Ali Sabry.
    The other is the Minister of Finance of over one billion people. She holds a Masters in Economics, Philosophy and Philosophy. She is India’s most successful finance minister after Dr. Manmohan Singh.
    She is the most powerful woman in India and the 37th most powerful woman in the world according to Forbes magazine.
    She is fulfilling her responsibility to provide IMF relief to help her neighboring island nation recover from the economic crisis.
    She is Nirmala Seetharaman.

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Comments (3)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. Lionel says:

    How can you reform with two idiots still in control and unelected henchman as chancellor.

  2. Maurice de Silva says:

    As long as no member of the Rajapakses touch this money, everything is going to be OK on the long run. They must keep an eye how this money is spent.

  3. Dave says:

    This is where the IMF talks take place.
    Here are two finance ministers from two neighboring countries and their financial experts.
    One finance minister took office a week ago. As the president’s personal lawyer, all his corruption allegations were subverted by fraud and later taken over by the relevant government’s Ministry of Law. He is Ali Sabry.
    The other is the Minister of Finance of over one billion people. She holds a Masters in Economics, Philosophy and Philosophy. She is India’s most successful finance minister after Dr. Manmohan Singh.
    She is the most powerful woman in India and the 37th most powerful woman in the world according to Forbes magazine.
    She is fulfilling her responsibility to provide IMF relief to help her neighboring island nation recover from the economic crisis.
    She is Nirmala Seetharaman.

Sri Lanka cabinet okays appropriation bill for 2024 budget

ECONOMYNEXT – Sri Lanka’s cabinet of ministers had approved a draft Appropriation Act for 2024, the state information office said.

The Finance Minister’s proposal to gazette the bill and table it in parliament was approved by the cabinet.

Presenting the appropriation bill is the first stage of presenting a budget for 2024,

The appropriation bills set outs the expenditure plans for each ministry.

The budget proposals, made in November is called the second reading of the Appropriation Act. (Colombo/Sept24/2023)

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Sri Lanka’s MEPA to get 28.5 mn rupees from Singaporean AEPW, for beach clean up

ECONOMYNEXT – Sri Lanka’s Marine Environment Protection Authority (MEPA) is to receive 5.7 million rupees a year, for five years, from Singapore-based marine waste solutions provider, Alliance to End Plastic Waste (AEPW), to maintain 8 beach cleaner machines.

The donation is meant to support MEPA clean coastal areas across Sri Lanka, using BeachTech Hydro Sweepy beach cleaner machines, previously donated by the organisation.

The oil industry-founded non-governmental organisation donated the 8 beach cleaners worth about US$180,000 to MEPA in the wake of the 2021 MV X-press Pearl ship disaster.

The machines manufactured by Kässbohrer Geländefahrzeug AG, a German company, are effective at cleaning up plastic nurdles and other types of potentially harmful non-biodegradable waste, minimising human contact with hazardous materials.

As a significant amount of money is spent for the deployment of these machines for beach cleaning activities, the Alliance to End Plastic Waste has agreed to provide the funds for the upkeep of the machines for a period of five years.

With this financial donation, the Maritime Environment Protection Authority will be able to continue using these machines without interruption to clean identified beaches in the future. (Colombo/Sep26/2023)

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Sri Lanka’s SEC makes four new appointments

ECONOMYNEXT – The Securities and Exchange Commission of Sri Lanka (SEC) made four new additions from diverse backgrounds to its leadership.

These appointments are expected to increase the effectiveness of the SEC secretariat in the respective operating areas, the SEC said.

Manuri Weerasinghe, with over 20 years of experience in accounting, financial management, financial reporting and auditing, was appointed Director, Corporate Affairs.

She is a Fellow Member of CA Sri Lanka, member of the Chartered Institute of Management Accountants and a member of the Certified Practicing Accountants of Australia.

Her academic credentials include a Master of Business Administration and a BSc (Hons) in Accountancy and Financial Management (Special).

Prior to joining the SEC, she served in several financial management positions in Bermuda and Sweden.

Madura P R Wanigasekara was appointed Chief Digital Officer. He has over 20 years delivering and managing IT solutions, and has held several senior management positions in the public and private sectors.

His academic qualifications include a Master of Science in Information Technology from the University of Colombo and a Bachelor of Information Technology from the Curtin University of Technology.

He is also a member of the Australian Computer Society (ACS).

Sharmila Panditaratne was appointed Assistant Director, Legal and Enforcement.

She is an Attorney-at-Law with over 21 years of experience as a securities market regulator.

She holds a Master of Laws degree from the University of Houston, Texas and has worked at two law firms in the USA prior to joining the SEC.

Riyaz Bary, Deputy Solicitor General at the Attorney General’s Department was appointed a Director on secondment basis. (Colombo/Sep26/2023)

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