Sri Lanka expects up to US$8b more in loans, asset restructuring

SRI Lanka is expecting loans of up to US$5 billion next year from multilateral agencies besides a deal with International Monetary Fund (IMF), the foreign minister told Reuters, adding that the government could raise up to US$3 billion through the restructuring of state assets.

“Apart from what we get from the IMF, we are looking at all others, the multilaterals put together another US$4-US$5 billion ...,” Ali Sabry said in an interview on Wednesday (Dec 14).

“The president is interested in restructuring some of the (state) institutions, so through that if we can raise US$2-US$3 billion, our treasury and reserves become strengthened.”

Struggling with its worst economic crisis in more than seven decades, Sri Lanka reached an IMF staff-level agreement in September for a loan of US$2.9 billion, which could be approved for disbursal next year. REUTERS