COLOMBO (NewsRadio); Sri Lanka is expecting around USD 2.5 billion from the World Bank and the Asian Development Bank once the approval is granted by the Board of the International Monetary Fund.
The IMF Board is expected to take up Sri Lanka’s case on the 20th of March.
The Ministry of Finance has confirmed that all lenders have given necessary debt assurances to clear the IMF hurdle while the government has also completed 15 tasks given when the staff-level agreement was reached in September last year.
In this back drop, the Finance Ministry is hoping to boost Sri Lanka’s reserves with the USD 1.5 billion commitment by the World Bank and USD 1 billion aid from the ADB.
Sri Lanka’s foreign reserves plummeted during the past three years and the government struggled to pay for even essentials such as fuel and gas last year.
The then-government also defaulted in April last year.
However under a new administration, Sri Lanka’s economy has been gradually recovering and according to the Central Bank of Sri Lanka, the foreign reserves are also increasing steadily.
The boost in reserves was helped by the increase in remittances by expatriate workers, tourist arrivals and the restrictions imposed on imports.
With the appreciation of the Sri Lanka Rupee against the US Dollar, last week, the CBSL has also managed to increase its reserves.
Meanwhile, State Minister of Finance Ranjith Siyambalapitiya informed NewsRadio that within one or two weeks following the Board approval, the first installment of the International Monetary Fund loan will be available.
Accordingly experts believe, with the investor confidence, the Rupee will perform even better which will help boost Sri Lanka’s foreign reserves.