Sri Lanka stands a strong chance of passing the first review of its $3 billion bailout given falling interest rates and a build-up of foreign reserves, according to the nation’s representative on the International Monetary Fund executive board.
The South Asian country’s efforts to achieve debt sustainability in line with IMF stipulations are also progressing smoothly, said Krishnamurthy Subramanian, who also represents India, Bangladesh and Bhutan. IMF officials will visit Sri Lanka in September “to take stock of the situation,” added Subramanian, one of 24 executive directors on the board.
Loan disbursement decisions like the upcoming one for Sri Lanka require a majority of voting shares at the board, a governing body for the IMF that tries to operate by consensus. Subramanian made clear that his views are his own, and that he couldn’t speak for the overall view of the board.