• Once received, a maximum of 4 weeks to get IMF Board approval, says Nandalal
• Refuses to comment on whether China’s 2-year moratorium is satisfactory

The International Monetary Fund (IMF) is awaiting financial assurances, similar to what has been provided by the Government of India, from China and the Paris Club members, for it to proceed with the agreed Extended Fund Facility (EFF) to Sri Lanka, said the Central Bank of Sri Lanka Governor Dr. Nandalal Weerasinghe last noon (25) during the first monetary policy review press conference for the year. 

Dr. Weerasinghe stated that once China and the Paris Club provide their assurance letters to the IMF, the Fund will analyse the letter and determine whether this letter meets the requirements before proceeding with the next step. 

“India has provided a financial assurance which is acceptable to the IMF. The Paris Club and China are in the process of issuing similar financial assurances. This process is making good progress. An assurance letter is a matter between creditors and the IMF. The IMF will require a maximum of four weeks upon receiving these two letters before providing the approval for the EFF,” Weerasinghe stated. 

However, when a journalist queried whether the Central Bank is satisfied with the two-year moratorium provided to Sri Lanka by the Export and Import Bank of China, Weerasinghe neither denied nor acknowledged the matter, and refused to comment.  

Earlier this week, the Export-Import Bank of China offered Sri Lanka a two-year moratorium on its debt and said it would support the country’s efforts to secure a $ 2.9 billion loan from the IMF. The letter comes amidst Sri Lanka’s ongoing debt restructuring talks with creditors and a financial assurance letter issued by India. 

According to the Governor, the EFF with the IMF is in its final stages and is likely to be received by the first quarter of this year, as mentioned in previous press conferences.