Sri Lanka in talks with IMF for rapid finance amid Coronavirus crisis
ECONOMYNEXT – Sri Lanka is in talks with the International Monetary Fund are in talks for a program under its Rapid Finance Instrument Director Asia Pacific Department Changyong Rhee said.
“We received the letter from the Sri Lankan government about our Rapid Financing Instrument ,” Rhee said.
“We have started to review it.”
Sri Lanka’s existing program with the IMF is stalled after the new administration slashed taxes in January going against its ‘revenue based fiscal consolidation’ thrust, worsening the deficit.
The Coronavirus crisis hit in March, which has further hit revenues as economic activities came to a virtual standstill amid lockdown-style curfews to curb the spread of the virus.
“We are now discussing with the government whether they want to switch the previous program into our new rapid facilities,” Rhee said.
“So we will discuss it this week.”
IMF has downgraded Sri Lanka’s gross domestic product to a negative 0.5 percent for 2020.
Sri Lanka 2020 GDP to contract 0.5-pct IMF says amid Coronavirus hit
Colombo/Apr16/2020 – Corrected. The facility Sri Lanka has requested to borrow is Rapid Finance Instrument)