Sri Lanka is currently expecting another $ 500 million line of credit from India for fuel, according to the Finance Minister of Sri Lanka, this amount will be able to meet the country’s fuel needs for 5 weeks.
Economic Crisis ,economic crisisSurrounded by ) Sri Lanka is currently facing long power cuts, shortage of food items and even shortage of medicines. Although Sri Lanka (Sri Lanka) If the government is to be believed, then the situation could be much worse than this if they did not get 3 billion dollars in help in the next 6 months. Reuters has given this information quoting the Finance Minister of Sri Lanka. The Finance Minister told the news agency that this amount is necessary to restore the supply of essential goods including fuel and medicines. Meanwhile, the inflation rate in the country (inflationTo curb this, the central bank of Sri Lanka has announced a sharp increase in key interest rates.
Help needed to keep the situation under control
According to the Finance Minister of Sri Lanka, they are trying to prevent the situation from going out of control. And talking to the lenders to demand more moratorium. According to him, if there is time to repay the loan, then he will try to bring the situation of the country back on track first. According to him, the country is going to start talking to the IMF once again this month. Along with this, the government is also talking about the payment related to the debt of $ 1 billion in July. According to JP Morgan, Sri Lanka has to make payments related to debt of $ 7 billion this year. While the current account deficit of the country is at the level of 3 billion dollars. Sri Lanka’s foreign exchange reserves are below $2 billion by the end of March. At the same time, the liabilities of International Sovereign Bonds are above $ 12 billion. According to the Finance Minister, his priority at present is to bring the situation in the country to normal level. Sri Lanka is currently expecting another line of credit of $ 500 million from India, according to the Finance Minister, this amount will be able to meet the fuel needs of the country for 5 weeks.
sharp rise in key rates
On the other hand, the Central Bank of Sri Lanka has announced a sharp increase of 7 percent in key rates to control inflation. Sri Lanka’s central bank has increased the rates in SDFR and SLFR by 7 percent to 13.5 percent in a meeting on Friday. The new rates have come into force with immediate effect. At the same time, the central bank of Sri Lanka said that in the coming times, due to the rise in commodity prices around the world and the impact on the supply in the country, the pressure of inflation may increase further.