COLOMBO, April 10 — Sri Lanka will need about US$3 billion in external assistance over the next six months to help restore supplies of essential items including fuel and medicine, Finance Minister Ali Sabry told Reuters on Saturday.
“The entire effort is not to go for a hard default,” Sabry said. “We understand the consequences of a hard default.” The IMF said on Saturday that it had started technical-level engagement with Sri Lanka’s finance ministry and central bank officials for a loan programme, and was “very concerned” about the ongoing crisis.
Sabry said he will lead a delegation of Sri Lankan officials to Washington to start talks with the IMF on April 18 and that financial and legal advisers would be selected within 21 days to help the government restructure its international debt. He said the government will raise taxes and fuel prices within six months and seek to reform loss-making state-owned enterprises.