Sri Lankan government in talks with IMF on a new loan

The Sri Lankan government is in talks with the International Monetary Fund about arranging a new credit called an extended fund facility.

 The IMF has just fully disbursed a $2.6 billion loan to Sri Lanka.

 Koshy Mathai, the IMF's resident representative in Sri Lanka, has told Reuters that there has been a "very preliminary discussion" with the government on a new facility.

He said the IMF wanted to "move to a new kind of arrangement, a sort of higher level of arrangement, where we are able to focus on macroeconomic goals we already have."

However, he said the specific arrangement, possible amount and tenure have not been talked about so far.

Governor Ajith Nivard Cabraal in June said Sri Lanka would seek an extended fund facility from the IMF to boost the economy after the current loan programme ends.

IMF (international monetary fund)

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