May 08, 2022

Talks with AIIB for $100m emergency support

The China-backed Asian Infrastructure Investment Bank is reportedly considering granting $100 million in emergency support to Sri Lanka.

The Ministry of Finance said in a statement, that Sri Lanka has requested foreign-exchange liquidity support for state banks from the lender.

Hit hard by the pandemic, rising oil prices and tax cuts by the government, Sri Lanka is experiencing a major economic crisis, with usable foreign reserves down to $50 million.

Shortages of essential commodities, fuel and medicines have brought thousands onto the streets in over a month of mostly peaceful protests.

Meanwhile, the government declared a second state of emergency in five weeks on Friday.

China has meanwhile extended Sri Lanka a $1.3 billion syndicated loan and a $1.5 billion yuan-denominated swap to boost the reserves.

The two countries are in talks for a $1.5 billion credit line and a fresh syndicated loan of up to $1 billion.

(newsradio.lk)

(Except for the headline, this story, originally published by newsradio.lk has not been edited by SLM staff)

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