Live Markets »News & Advice»Market News»Market News Details
Market News Details
Back

Beleaguered Sri Lanka gets $164 million IMF cash after long delay

AFP | PTI/Colombo 14 May 19 | 04:16 PM

The International Monetary Fund Tuesday released a long-delayed loan instalment to Sri Lanka, providing financial relief to a government still reeling from the Easter Sunday bombings that claimed 258 lives.

The Washington-based lender said it was releasing $164.1 million to Sri Lanka under a three-year $1.5 billion bailout that was suspended in October during a power struggle between the president and the prime minister.

Related Stories

    No Related Stories Found
Widgets Magazine

With the status quo restored, the administration has been able to present a "well-targeted 2019 budget, rebuilding reserves, while maintaining a prudent monetary policy", said IMF deputy managing director Mitsuhiro Furusawa.

The power struggle was resolved after the Supreme Court ruled that President Maithripala Sirisena violated the constitution by sacking Prime Minister Ranil Wickremesinghe's government.

The loan programme, begun in June 2016, would be extended by a further year, the IMF said.

Sri Lanka estimates that it will lose about $1.5 million in revenue this year as a result of a sharp dip in tourist arrivals following the April 21 suicide bombings.

The bombings, blamed on a local jihadi group, targeted three Christian churches and three luxury hotels.

During the political crisis in the final quarter of 2018, three international credit rating agencies downgraded the country's debt making it more expensive to borrow abroad.

Official figures show that Sri Lanka will have to repay a record $5.9 billion in foreign loans in 2019.

The IMF also renewed its call to the Sri Lankan government to restructure the loss-making national carrier Sri Lankan Airlines, which has accumulated losses and debts of over $2 billion.

The government has failed to privatise the airline, but the president has revived attempts to find a partner who could inject new capital to keep the airline afloat.

Widgets Magazine

Sensex

Company Price Gain (%)
NTPC129.852.20
Coal India221.950.68
TCS2,076.950.55
O N G C144.100.42
Power Grid Corpn205.900.27

Poll

Currently No Poll Available.

Online Portfolio

You can create Online Portfolio here using the below button.

Widgets Magazine