By Charumini de Silva

The Government yesterday said no final decision had been taken yet with regard to seeking financial support from the International Monetary Fund (IMF).

“It has not been decided yet whether to seek a facility from the IMF or not. The Government will consider such an option only after analysing future local and global economic conditions,” Cabinet Co-Spokesman and Plantation Industries Minister Dr. Ramesh Pathirana said in response to a question posed at the post-Cabinet meeting media briefing yesterday.

Sri Lanka last week received nearly $ 780 million within the IMF’s overall release of $ 650 billion in new Special Drawing Rights to its members as support to combat the COVID-19 pandemic.

The main Opposition Samagi Jana Balawegaya (SJB), as well as the United National Party (UNP), have repeatedly urged the Government to go for a support program with the IMF given the ongoing foreign exchange crisis faced by the country.

Ministers have previously maintained that the Government could manage the economy without a support program from the IMF, instead relying on bilateral funding arrangements and other measures. However, since the appointment of Basil Rajapaksa as Finance Minister, speculation has been rife that the Government will eventually go for an IMF program.

Since 1965, Sri Lanka has had 16 support programs with the IMF worth $ 4.4 billion but drawn only $ 3.6 billion.

 

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