On 25 Jan 2021, Dr. Nandalal Weerasinghe, the Governor of Central Bank of Sri Lanka (CBSL), expressed his optimism at a press conference on Monetary Policy Review No. 01 of 2023, that all of Sri Lanka’s creditors would be able to provide financial assurances to International Monetary Fund (IMF) for the island’s debt restructuring plan soon.
He further mentioned that India had already given clear financial assurances, accepted by IMF standards, while China, Paris Club and other smaller creditors are in the process of doing the same.
“There have been a lot of significant communications happening between the IMF and the Paris Club and other non-Paris Club members, and also with our Minister of Finance. That process is making very good progress”, the CBSL Governor stated, explaining that the issuance of financial assurances is a matter between the creditors and the IMF.
He stated that, to begin with, creditors will send a letter to the IMF. After that, the IMF will evaluate if the financial guarantees they received are enough to pass the approval for the Extended Fund Facility (EFF) Sri Lanka is currently expecting.
“As a result, we hope that IMF would be able to receive the necessary financial assurances from all the creditors in a very short period”, he said in this regard.