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Monday June 27th, 2022

Sri Lanka talks with IMF extremely urgent: EU delegation

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)

Comments (1)

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  1. myers says:

    Here s the solution.
    People are suffering on a daily basis. No fuel, no gas, No power, no milk.
    Initial steps
    225 must work  together. No if s and but’s.  Don’t waste time talking about how you both disagree on terms. Think of the downtrodden and work towards a consensus as to how you can work towards alleviating the immediate  burdens of the people.
    Constitutional reform is important, but let’s work on solving the immediate issues.
    However, resignation of at least the PM is recommended. A new PM from the same govt group or opposition is advisable.
    Meanwhile The President works with the relevant ministry secretaries to  continue with  the daily operations of govt.
    First step is to eliminate the “Polim  yugaya”.
    Work immediately towards a short term  bridge loan of at least US$3B. India China and/or Japan are good candidates. Pres has finally selected a few well educated individuals for debt and economy restructuring.Consult  with muslim leaders in SL to contact Middle east countries for loans. Saudi, Qatar etc.
    Simultaneously work with international lending consortiums such as  ADB IMF World Bank. Work towards a long term solution. 
    The Govt  can  also try large equity lenders such as Blackrock,   Carlyle or other   International large Equity capital  lenders. Not easy but worth a try.
    Default on bond/debt  payments could be inevitable. Request  lenders for restructuring debt payments. Bond holders will have to wait longer. This will happen if the bridge loans are insufficient to service the payment structure.
     If a default is unavoidable so be it. People first.
    It will be a tough road ahead . But it can be done. Sri Lankans have a strong resilient population.(remember the war, Tsunami?) They will support  any  lawmaker who offers realistic hope.Get on with it, politicians! Less rhetoric, more work!

View all comments (1)

Comments (1)

Your email address will not be published.

  1. myers says:

    Here s the solution.
    People are suffering on a daily basis. No fuel, no gas, No power, no milk.
    Initial steps
    225 must work  together. No if s and but’s.  Don’t waste time talking about how you both disagree on terms. Think of the downtrodden and work towards a consensus as to how you can work towards alleviating the immediate  burdens of the people.
    Constitutional reform is important, but let’s work on solving the immediate issues.
    However, resignation of at least the PM is recommended. A new PM from the same govt group or opposition is advisable.
    Meanwhile The President works with the relevant ministry secretaries to  continue with  the daily operations of govt.
    First step is to eliminate the “Polim  yugaya”.
    Work immediately towards a short term  bridge loan of at least US$3B. India China and/or Japan are good candidates. Pres has finally selected a few well educated individuals for debt and economy restructuring.Consult  with muslim leaders in SL to contact Middle east countries for loans. Saudi, Qatar etc.
    Simultaneously work with international lending consortiums such as  ADB IMF World Bank. Work towards a long term solution. 
    The Govt  can  also try large equity lenders such as Blackrock,   Carlyle or other   International large Equity capital  lenders. Not easy but worth a try.
    Default on bond/debt  payments could be inevitable. Request  lenders for restructuring debt payments. Bond holders will have to wait longer. This will happen if the bridge loans are insufficient to service the payment structure.
     If a default is unavoidable so be it. People first.
    It will be a tough road ahead . But it can be done. Sri Lankans have a strong resilient population.(remember the war, Tsunami?) They will support  any  lawmaker who offers realistic hope.Get on with it, politicians! Less rhetoric, more work!