Prime Minister Ranil Wickremesinghe says Sri Lanka intends on entering into an official level agreement with the International Monetary Fund by the end of July.
Speaking in Parliament today, Prime Minister Wickremesinghe said Sri Lanka is facing a far more serious situation at present, beyond the mere shortages of fuel, gas, electricity and food.
The Premier noted that Sri Lanka’s economy is facing a complete collapse which is the most serious issue the country is facing at present.
Prime Minister Wickremesinghe said in order to revive the Sri Lankan economy; the government must first resolve the foreign reserves crisis.
The Prime Minister said they have requested for fresh assistance from India, despite receiving loans amounting to USD 4 billion under the Indian credit line recently.
The Premier noted that the only safe option for Sri Lanka to overcome the crisis is to hold discussions with the International Monetary Fund.
Prime Minister Ranil Wickremesinghe said following discussions with the Central Bank, Treasury, relevant government officials, professionals and experts a plan has been formulated to take forward a programme that will stabilise the economy.
Premier Ranil Wickremesinghe also noted that they have commenced discussions with the IMF delegation currently in Sri Lanka.
The Prime Minister said they have concluded the initial discussions and have exchanged ideas on various sectors such as public finance, finance, debt sustainability, stability of the banking sector and the social security network.
The Premier added that representatives of the financial and legal advisory firms Lazard and Clifford Chance are also in Sri Lanka to assist the government in restructuring the debt.
The Prime Minister added that next Monday, a team of representatives from the US Department of the Treasury will also arrive in Sri Lanka.
Premier Wickremesinghe said they have ensured that the background necessary to hold discussions with teams scheduled to arrive from the US and India.
Prime Minister Ranil Wickremesinghe said they are hoping to complete the debt restructuring plan with the support of Lazard and Clifford Chance before the end of July.
The Prime Minister added that the government is also currently holding discussions with the World Bank, Asian Development Bank, the United States, other friendly nations and heads of state to secure interim short-term loans till Sri Lanka receives IMF support.