New Delhi, Mar 24 (UNI) India on Friday welcomed the announcement of the IMF bailout for Sri Lanka and hoped it would support the island nation on its path to economic recovery and growth.
India also said that it expects all concerned to engage in the forthcoming process of restructuring of Sri Lankan debt “in the spirit of transparency” which would ensure “that no side arrangements are made with any creditor”.
MEA spokesperson Arindam Bagchi in a media briefing, said:
“Let me first of all welcome the extended EFF (Extended Fund Facility) facility agreement that they (IMF) did with Sri Lanka... So we welcome this announcement. I think it's made both by the IMF itself and by the Sri Lankan Government. We hope that this step will further support Sri Lanka as it strives for the early economic recovery path to economic growth.
“As you are aware, India was the first bilateral creditor of Sri Lanka to support debt restructuring and also convey a specific and credible financing assurances to the IMF. I think we did it on 16th January or middle of January so that it cleared the way for Sri Lanka to secure this IMF program.
“On a larger note, we would expect all concerned to engage in the forthcoming process of restructuring of Sri Lankan debt in the spirit of transparency and comparability of treatment for all external creditors. That will ensure that no side arrangements are made with any creditor,” he said.
Sri Lanka received $330 million as the first tranche of the IMF bailout programme, which will pave the way for the debt-ridden country to achieve better "fiscal discipline" and "improved governance," according to President Ranil Wickremesinghe.
The International Monetary Fund (IMF) on Tuesday approved a $3 billion bailout programme to help Sri Lanka overcome its economic crisis and catalyse financial support from other development partners, a move welcomed by Colombo as a "historic milestone”.
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