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CBSL Governor Prof. W.D. Lakshman[/caption]
While discussions between the Central Bank of Sri Lanka (CBSL) and the International Monetary Fund (IMF) continue on various technical matters, there has not been a definite series of negotiations between the Central Bank, the Treasury, and the IMF with regard to Sri Lanka’s request for a Rapid Financing Instrument (RFI), according to the Central Bank Governor.
CBSL Governor Prof. W.D. Lakshman disclosed this during the Monetary Policy Review press conference yesterday (19) in response to a question raised by The Morning Business.
“We continue to discuss problems with the IMF but have not specifically focused on this Rapid Financing Instrument arrangement. We have not started any negotiations for that yet,” Prof. Lakshman added.
Responding further to the question, the Governor added that it is the Government’s policy to work as much as possible to resolve Sri Lanka’s foreign exchange problems on a self-reliant basis, which is on the basis of domestic efforts, and also to discuss with institutions, organisations, and countries that are willing to assist on a relatively non-interventionist basis.
“This is the policy currently adopted and we also have the policy of finding foreign exchange requirements on a non-credit increasing kind. That's the general policy, and I think we are going to be relatively successful in the process, as the negotiations which we are carrying on with a few counties and a few other international agencies will come to successful conclusions, probably during the next couple of months,” he added.
Sri Lanka submitted the request to the IMF for emergency financial support under the RFI in April last year. In mid-April, IMF Acting Mission Chief for Sri Lanka Masahiro Nozaki confirmed to The Sunday Morning Business that this request was being reviewed. Nozaki added that the RFI, if approved, could potentially replace the $ 1.5 billion existing Extended Fund Facility (EFF) arrangement of Sri Lanka with the IMF, from which Sri Lanka has so far received $ 1.3 billion.
CBSL Governor Prof. W.D. Lakshman[/caption]
While discussions between the Central Bank of Sri Lanka (CBSL) and the International Monetary Fund (IMF) continue on various technical matters, there has not been a definite series of negotiations between the Central Bank, the Treasury, and the IMF with regard to Sri Lanka’s request for a Rapid Financing Instrument (RFI), according to the Central Bank Governor.
CBSL Governor Prof. W.D. Lakshman disclosed this during the Monetary Policy Review press conference yesterday (19) in response to a question raised by The Morning Business.
“We continue to discuss problems with the IMF but have not specifically focused on this Rapid Financing Instrument arrangement. We have not started any negotiations for that yet,” Prof. Lakshman added.
Responding further to the question, the Governor added that it is the Government’s policy to work as much as possible to resolve Sri Lanka’s foreign exchange problems on a self-reliant basis, which is on the basis of domestic efforts, and also to discuss with institutions, organisations, and countries that are willing to assist on a relatively non-interventionist basis.
“This is the policy currently adopted and we also have the policy of finding foreign exchange requirements on a non-credit increasing kind. That's the general policy, and I think we are going to be relatively successful in the process, as the negotiations which we are carrying on with a few counties and a few other international agencies will come to successful conclusions, probably during the next couple of months,” he added.
Sri Lanka submitted the request to the IMF for emergency financial support under the RFI in April last year. In mid-April, IMF Acting Mission Chief for Sri Lanka Masahiro Nozaki confirmed to The Sunday Morning Business that this request was being reviewed. Nozaki added that the RFI, if approved, could potentially replace the $ 1.5 billion existing Extended Fund Facility (EFF) arrangement of Sri Lanka with the IMF, from which Sri Lanka has so far received $ 1.3 billion.