IMF considers Lanka's request for rapid financing facility

The International Monetary Fund ( IMF) is evaluating Sri Lanka’s request for a rapid financing facility to support the country during the coronavirus pandemic.

Fifty countries, including Sri Lanka, are to be assessed to receive this facility with approval already given to requests for emergency pandemic aid from 50 more countries out of its 189 members.

A total of about USD 18 billion has been allocated and the IMF is continuing to work quickly through these remaining more than 50 requests, an IMF spokesman said.

The IMF’s executive board was working through requests at record speed, spokesman Gerry Rice told reporters in an online briefing.

Responding to a question raised by the Sunday Times on the status of IMF rapid credit facility requested by Sri Lanka and the kind of engagement, he said: “I can confirm, we have received a request from the Sri Lankan government for emergency financial support, under the rapid financing instrument.”

The Fund’s staff was considering requests from Sri Lanka, South Africa and Zambia among others for rapid financing facility, he disclosed without revealing the amounts they have requested.

"The Fund will be working in close coordination with the Sri Lankan government to assess all relevant factors related

to that request,” Mr. Rice said, adding that “I can also say that the Sri Lankan authorities also expressed interest in a range of options for future engagement with the Fund.”

“In this context, again, we’re discussing the authority’s intention to replace the extended fund facility arrangement that they had with the rapid financing instrument.”

The aid granted under the IMF’s rapid financing initiatives comes without the usual conditionality. But the Fund is working to ensure transparency and prevent corruption by asking all recipient governments to commit to enhanced reporting of crisis-related spending and undertake audits, Mr. Rice said.