Sri Lanka will be seeking at least US$ 2 billion in financial contributions from foreign donors and International lending agencies for medium-term external debt, servicing and rebuild the economy.
The World Bank’s Board approved US $128.6 million to help the country prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness.
The Asian Development Bank (ADB) has allocated a $600,000 grant from the Health System Enhancement Project to the Government of Sri Lanka to finance preventive and response efforts to fight a potential novel coronavirus (COVID-19) outbreak in the country.
$ 4.4 b foreign debt repayment is due this year, of which $ 3.2 b is due between May and December and $ 13.8 billion falling due between 2021 and 2023.
Dr. Jayasundera said that Govt. has approached bilateral and multilateral donors for debt repayment relief.
The country Seeks IMF support to replace EFF to Rapid Credit Facility offering concessionary funding with less conditions; SL could stand to get $ 800 m if successful.
Govt. has asked WB, ADB to make higher allocation from agreed medium-term funding arrangements.
It also seeks 2-year debt moratorium from bilateral development partner lending and Dr. Jayasundera reiterateds Sri Lanka will under no circumstances dishonour debt obligations and investor trust.
Sri Lanka is in discussions with several global lenders to support the country’s financial crisis, treasury secretary S.R. Attygalle said, in the backdrop of a brewing economic crisis.
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