Sri Lanka is seeking $5 billion in funds this year to meet repayments for gasoline imports and other products purchased with credit lines, as well as $1 billion to boost its foreign reserves, according to the prime minister’s office.
The island country is experiencing its greatest financial crisis in more than seven decades, with a severe foreign exchange deficit preventing it from paying for basic imports like food, gasoline, fertilizers, and pharmaceuticals.
Sri Lanka’s foreign exchange reserves stood at $1.81 billion in April.
Sri Lanka is also negotiating a bailout package with the International Monetary Fund. Prime Minister Ranil Wickremesinghe has raised taxes to shore up government revenues.
He plans to cut expenditure sharply in an interim budget to be presented within weeks.
This report’s information was first seen on Reuters; to read more, click this link.