IMF says Sri Lanka needs to restore debt sustainability to secure fund’s support – The National

IMF says Sri Lanka needs to restore debt sustainability to secure fund’s support – The National

Sri Lanka's government needs to provide assurances about its debt sustainability to secure any kind of support from the International Monetary Fund, the Washington-based lender said following a staff visit to the country, which is battling its worst economic crisis since its independence in 1948.

The fund said it welcomed the appointment of financial and legal advisers to engage in discussions with the country's creditors but called Sri Lanka's debt “unsustainable”.

“IMF staff will continue to monitor the economic and political situation very closely and engage with the authorities to formulate concrete measures under an IMF-supported programme, as well as broader stakeholders to support a timely resolution of the crisis,” the lender said on Thursday.