Sri Lanka says board approval for IMF bailout likely in first quarter this year

Sri Lanka’s Cabinet Spokesman Bandula Gunawardena has assured that positive responses have been received thus far with regards to the bailout due to be received by Sri Lanka from the International Monetary Fund (IMF).
 
Responding to a question at the Cabinet briefing this morning (17 Jan.), the minister noted that the Minister of Foreign Affairs Ali Sabry had assured that positive responses have been received pertaining to the Extended Fund Facility (EFF) which Sri Lanka is seeking from the IMF.
 
Thus, he noted that agreements are currently being reached between India, China and Japan about the restructuring of Sri Lanka’s debt, adding that the board approval for the IMF bailout will likely be signed in the first quarter of 2023, based on these agreements.
 
A recent report put forth by the Standard Chartered Bank, however, had revealed that board approval for the bailout will likely be signed in the second quarter of 2023, owing to delays in securing financial assurances from its bilateral creditors.
 
Standard Chartered’s Global Research report also read that this could further delay negotiations with commercial creditors, which are also expected to be pushed back to the second half of 2023.