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Sri Lanka urgently seeks $6 bn to keep economy afloat

Cash-strapped Sri Lanka on June 7 asked the International Monetary Fund to arrange a creditor...

👤 H K Badal7 Jun 2022 3:48 PM GMT
Sri Lanka urgently seeks $6 bn to keep economy afloat


People belonging to the tourism sector, take part in a peaceful protest in front of the Russian Embassy in Colombo on 6 June


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Cash-strapped Sri Lanka on June 7 asked the International Monetary Fund to arrange a creditor meeting for $6 billion in loans to help keep the country afloat during its unprecedented economic crisis.

Months of daily blackouts, long queues for petrol and record inflation have made daily life a misery in the South Asian island nation of 22 million people.

The government has already defaulted on its $51 billion foreign debt, and a critical shortage of foreign currency has left traders unable to import adequate supplies of food, fuel and other essential goods.

Prime minister Ranil Wickremesinghe said the country needed $5 billion for its daily needs in the next six months, along with another billion to stabilise Sri Lanka's rapidly depreciating rupee.

Sri Lanka is already in talks with the IMF for a bailout and has appointed international experts to help restructure its debt, about half of which is in international sovereign bonds.