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Sri Lanka hopes to raise $5 billion after IMF negotiations

Staff writer ▼ | March 30, 2016
Sri Lanka hopes to raise $5 billion for a financial safety net following positive negotiations with the International Monetary Fund (IMF) in mid-April, according to the Governor of Central Bank Arjuna Mahendran.
Sri Lanka
Asia   A financial safety net
The final negotiations with the IMF will begin soon after Prime Minister Ranil Wickremesinghe's visit to China next month.

Speaking to the state newspaper Sunday Observer, the head of the Central Bank said the government expects to receive $1 billion from the IMF and the rest would be raised from other global lenders including the World Bank and Asian Development Bank.

"We need the IMF's positive signal soon. Thereafter, the rest will come through the World Bank, Asian Development Bank, JBIC, JAICA, EXIM Bank of India, EXIM Bank of China and China Development Bank," Mahendran said.

"There are very tough negotiations ahead of us; the IMF wants us to prove that we can collect better revenue and sort out our other financial issues," he added.

Sri Lanka recently held discussions with the IMF to obtain a $1 billion funding instrument from the lender as the country's Balance of Payments reached crisis proportions due to the excessive debt and colossal losses at state enterprises. The country received a $2.6 billion bailout package from IMF in 2009-2011.