A delegation led by the Minister of Finance has left the island for discussions with the International Monetary Fund (IMF).

The delegation includes Finance Minister Ali Sabry, Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe and Secretary to the Ministry of Finance Mahinda Siriwardena.

Accordingly, they are scheduled to visit the headquarters of the International Monetary Fund at Washington D.C., USA. The talks are scheduled to take place from April 19 to 24.

Sri Lanka is expected to receive close to USD$ 4 billion if the discussions with the IMF are successful.

It would be made available to Sri Lanka under five tranches, enabling Sri Lanka to ensure the credibility in the global financial sector.

However, if Sri Lanka receives financial assistance from the International Monetary Fund, their recommendations will also have to be implemented in Sri Lanka.

Accordingly, it is reported that during the visit, close attention will be paid to the recommendations that will be implemented and how they will be implemented.

Finance Minister Sabry had said previously that Sri Lanka is seeking a bail out package of $4 billion from the IMF.

The visit is taking place days after the finance ministry on Tuesday announced that it is suspending repayments of foreign debt, including bonds and government-to-government borrowing, pending the completion of a loan restructuring programme with the IMF. 

Sri Lanka had to meet $7 billion of debt payments this year.

This was the first ever debt default by Sri Lanka in its history since 1948 and the people of the country are facing crippling power cuts, and an extreme scarcity of food, fuel and other essential items such as medicines.