ECONOMYNEXT – There is an “extreme urgency” for Sri Lanka to begin in-depth talks with the International Monetary Fund, the European Delegation to Colombo said as the island’s soft-pegged nation printed unusual volumes of money and is unable to import fuel and medicine.
“We stress the extreme urgency of the situation, which requires the authorities to start in-depth discussions with the International Monetary Fund (IMF) on the reforms needed to bring the Sri Lankan economy back to a sustainable path,” the statement said.
Sri Lanka has been wracked by protests calling for the removal of President Gotabaya Rajapaksa and the entire cabinet resigned.
The opposition has also called for President Rajapaksa to resign before joining an interim administration.
“We call on all parties to explore constructive and democratic ways out of the current crisis that has taken its toll on the Sri Lankan people,” the EU delegation backed byAustralia, New Zealand, Norway, Switzerland, and the United Kingdom said.
Sri Lanka has a soft-pegged Latin America style central bank and the currency has also slid steeply. (Colombo/Apr08/2022)