India Asks IMF To Urgently Provide Financial Assistance To Crisis-Hit Sri Lanka

India on Tuesday (19 April) asked the International Monetary Fund (IMF) to provide financial assistance to Sri Lanka, which is facing a severe economic crisis.

Union Minister for Finance Nirmala Sitharaman held a bilateral meeting with IMF managing director Kristalina Georgieva on the sidelines of the International Monetary Fund-World Bank (IMF-WB) Spring Meetings in Washington DC, United States.

Georgieva praised India’s vaccination programme and the help extended to its neighbour and other vulnerable economies.

"The IMF MD particularly brought reference to the help India is providing to Sri Lanka during their difficult economic crisis," the Finance Ministry said in a press release.

Sitharaman indicated that IMF should support and urgently provide financial assistance to Sri Lanka, the release said.

The IMF MD assured Sitharaman that the the organisation would continue to actively engage with Sri Lanka.

During the meeting, they discussed issues of importance for India besides several issues currently being faced by the global and the regional economies.

Georgieva highlighted the resilience of India which remains the fastest-growing country across the globe despite challenges posed by the COVID-19 pandemic, the release said.

The IMF MD also referred to an effective policy mix followed by India that was well targeted and lauded New Delhi for its contribution to the capacity development activities of the IMF.

Discussing the recent geopolitical developments, Sitharaman and Georgieva raised concerns about its impact on global economy and the challenges linked to the rising energy prices due to it.

Explaining India’s policy approach, Sitharaman mentioned that an accommodative fiscal stance was also accompanied by major structural reforms, including the bankruptcy code and targeted help to MSME and other vulnerable sections.

Sitharaman said that Monetary Authority fully supported and complemented these efforts with an accommodative stance.

The Finance Minister further stated that India has been helped by good agricultural output, supported by a good monsoon during the COVID pandemic period. Agricultural exports, along with other exports, have also sharply increased.

India is entering into new economic activities which will help resolve some of the global supply chain issues, the minister said.

Earlier in the day, FM Sitharaman met her Sri Lankan counterpart Ali Sabry and discussed current economic situation and approach towards addressing the prevailing challenges in Sri Lanka.

She assured the Sri Lankan Finance Minister that as a close friend and good neighbour, India will try to extend all possible cooperation and assistance to Sri Lanka.