CBSL governor hopeful of securing creditor assurances in December

Central Bank Governor Dr. Nandalal Weerasinghe says that Sri Lanka can expect approval for the USD 2.9 billion International Monetary Fund (IMF) Rapid Financing Instrument in January next year, as creditor assurances from countries including China and India can be obtained this month.
 
Joining ‘@HydePark’ current affairs programme on Ada Derana 24, the governor said that Sri Lanka should not fear IMF involvement, as in the case of Greece following its financial crisis, but instead look to the success in India and South Korea following IMF bailout.

In response to a question whether it will take until March 2023 to secure the IMF bailout package, Dr. Nandalal Weerasinghe pointed out that it depends on the ability to obtain assurances from bilateral creditors, and that the creditors have sufficient information to decide their contribution for them to determine on what kind of conclusion that they have to make towards restoring Sri Lanka’s sustainability for a long period.

“First step is getting assurances from all creditors”, he noted.

The CBSL chief further mentioned that the IMF needs a maximum of 2-3 weeks to get the programme approved, adding that the approval can be obtained in January, if the assurances are secured during this month.

Crisis situations faced by India and South Korea previously are comparable to Sri Lanka, Dr. Nandalal Weerasinghe said, highlighting that those countries too have obtained similar bailout packages. But that they took correct measures and never went back to the IMF, he added.