(Reuters) – Sri Lanka’s extended fund facility (EEF) arrangement can be presented to the International Monetary Fund’s board for approval as soon as the island nation obtains adequate assurances from bilateral creditors and meets remaining requirements, an IMF spokesperson said on Friday.
The island of 22 million people has been battling its worst economic turmoil since independence from Britain in 1948, which has forced it to default on loans and seek a bailout from the IMF.
“We welcome the recent statement by the Paris Club to provide financing assurances to Sri Lanka following the assurances provided by India,” the spokesperson told Reuters in a statement.
“As soon as adequate assurances are obtained and remaining requirements are met, including by the Sri Lankan authorities, the EFF arrangement for Sri Lanka can be presented to the IMF’s Executive Board for approval that would unlock much needed external financing.”
(Reporting by Swati Bhat, editing by Sudipto Ganguly)
