The International Monetary Fund is considering Sri Lanka’s request for a standby agreement after the country’s foreign exchange reserves fell to a two year low.
The IMF’s response will depend on an assessment of Sri Lanka’s macroeconomic vulnerabilities, the nature of the balance of payments said the IMF’s representative in Colombo.
Responding to emailed questions, Eteri Kvintradze said,
“We have not formally entered into program negotiations nor do we have any new missions to Colombo scheduled outside of technical assistance and regular surveillance.”
Even if Sri Lanka meets its 2015 deficit target, its position will still remain weaker than most similarly rated sovereigns, reports Bloomberg Business.
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