President Ranil Wickramasinghe says that he expects to reach a staff level agreement with the International Monetary Fund by the end of August.
The President stated this in an interview with The Wall Street Journal yesterday (July 31).
He has mentioned that after reaching an agreement, Sri Lanka will be able to negotiate further with the sovereign bond holders and bilateral creditors.
However, he has pointed out that even if any kind of basic agreement is reached to obtain funds, it will require the approval of the IMF Board of Directors and it is a process that may take months.
The President has stated there that if it were not for the unstable political situation, a staff-level agreement with the International Monetary Fund would have been reached in July.
“I think we've already hit rock bottom. I can see the light at the end of the tunnel. The only thing now is how quickly it can be reached."
The President has stated that it will take several months for many Sri Lankans suffering from high inflation, long queues for fuel and domestic gas to see a significant improvement in their economic condition.
The President has stated that after the International Monetary Fund agreement, the country will have to restructure the debt with creditors through various approaches.
Mr. Wickramasinghe has stated there that the Central Bank is confident of finding enough money to import enough fuel to alleviate the acute fuel shortage.
He has pointed out that despite the IMF agreement, Sri Lanka will have to get more than $3 billion from other sources next year to carry out major imports such as fuel, food and fertilizers.
Mr. Wickramasinghe has further stated with The Wall Street Journal that he is paying attention to the process that took place in Zambia.
Over the past two years, Zambia has undergone a $17 billion foreign currency debt restructuring under a plan involving China developed by a group of 20 countries during the pandemic.
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