SL still awaiting an India-like assurance from China to IMF

• Once received, a maximum of 4 weeks to get IMF Board approval, says Nandalal
• Refuses to comment on whether China’s 2-year moratorium is satisfactory

Despite the receipt of a letter from the Export-Import Bank (EXIM) of China offering Sri Lanka a two-year moratorium on its debt to support efforts to secure a $ 2.9 billion loan from the the International Monetary Fund (IMF), Sri Lanka is awaiting financial assurances from China to the IMF, similar to what was provided by the Government of India last week.

“India has provided a financial assurance which is acceptable to the IMF. The Paris Club and China are in the process of issuing similar financial assurances. This process is making good progress. An assurance letter is a matter between creditors and the IMF. The IMF will require a maximum of four weeks upon receiving these two letters before providing the approval for the EFF,” said the Central Bank of Sri Lanka Governor Dr. Nandalal Weerasinghe last noon (25) during the first monetary policy review press conference for the year. 

However, when a journalist queried whether the Central Bank is satisfied with the two-year moratorium provided to Sri Lanka by the Export and Import Bank of China, Weerasinghe neither denied nor acknowledged the matter, and refused to comment.  

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