The International Monetary Fund announced on Tuesday (07) that Sri Lanka has received financial assurances from all its major bilateral creditors. This paves the way for the IMF Board to consider the approval of the Staff Level Agreement for financing under the Extended Fund Facility on March 20.
Earlier in the day, China gave assurances that it will support Sri Lanka’s debt restructuring, clearing the biggest hurdle for the nation to secure a USD 2.9 billion bailout from the IMF.
The IMF approval for a USD 2.9 billion loan depended on financial assurance from all Sri Lankan creditors. India and members of the Paris Club initially expressed their willingness to provide financial assurance verbally. Some of the tools discussed by creditors include debt moratoriums and refinancing. The IMF approval is considered to be vital as means of reviving the country’s ailing economy.