The debt crisis and the collapse of foreign exchange reserves that triggered inflation in the island nation, Sri Lanka have attracted world attention and opened up space for certain bodies to channel ‘aid’.
Most recently, the International Monetary Fund (IMF) and The World Bank are seen at the forefront in helping the unfortunate country.
In a statement from Sri Lankan Finance Minister Ali Sabry, he had held "technical discussions" with the IMF for a US $ 500 million aid application, which he said would be "fruitful".
Among the gist of Sabry stated in the discussion was that the IMF would focus on the traditional Extended Fund Facility Program but the $ 3 million to $ 4 million funding needed now could be finalized.
He added that he was also in the process of seeking assistance from the World Bank, the Indian government and other financial institutions in settling the external debt amounting to $ 51 billion.
Meanwhile, the IMF explained that the discussions were aimed at Sri Lanka's need to implement a 'credible and coherent strategy'.
According to the IMF, it is important for Sri Lanka to revive the macroeconomy and strengthen its social safety net as well as protect the poor during the crisis.
He argued that Sri Lanka needs to settle its existing debt before creating a new debt for Colombo.
In addition, a World Bank spokesman, which is ‘deeply concerned about the situation in Sri Lanka’, stated that they would approve an emergency response package including $ 10 million that would be provided immediately for the purchase of medicines and divert funds from the ongoing Covid-19 health project walk.
According to the spokesperson, the package will leverage on existing bank -funded projects and reuse the funds to provide medicine, food at schools and cash transfers to poor households such as the provision of basic food supplies.
