ECONOMYNEXT – Sri Lanka is expecting to go to the IMF board in January 2023 if it misses the December window and is confident of getting assurance from bilateral creditors soon, Central Bank Governor Nandala Weerasinghe said.
“Most probably meeting the IMF target is too optimistic but if we miss that we still have time till January,” Governor said.
“We should get the assurance from our bilateral creditors in the next couple of weeks.
“We are very confident on that with the way discussions are going on.”
Related : Sri Lanka IMF deal nod could be Jan 2023
Sri Lanka was encouraging bilateral creditors including Paris Club, India, and China to form themselves into an ad-hoc creditor platform and give financial assurances before December 2022.
Sri Lanka also has to complete a series of prior actions to get IMF board approval. Usually, a country has to end money printing, and exchange policy conflicts, and crush domestic investments to stabilize the external sector before getting the first drawdown.
Sri Lanka has already raised taxes, raised energy prices, and presented a budget for 2023.
He said although reports claim that IMF will go on vacation in December, they will continue their work for at least three days a week as they have a lot on their agenda.
Sri Lanka has gone to the IMF 16 times due to its soft peg but managed to avoid default as the country did not have market access to borrow large volumes of foreign debt.