6 days ago
Former Sri Lankan Finance Minister Credits India for IMF Turnaround
Sri Lanka was having a very serious money problem in 2022.
The country had shortages of foreign currency, fuel and medicines, while prices were rising.
India helped Sri Lanka by giving it credit to buy important supplies.
Later, Sri Lankan Finance Minister Ali Sabry met officials from the International Monetary Fund.
He said the officials were initially doubtful that Sri Lanka could get help.
Before an important meeting, Sabry had lunch with Indian Finance Minister Nirmala Sitharaman.
Sitharaman said she would speak with IMF leader Kristalina Georgieva.
Sabry said the IMF meeting felt much more positive afterward, and that most of Sitharaman’s discussion with Georgieva was about Sri Lanka.
Former Sri Lankan Finance Minister Ali Sabry said Indian Finance Minister Nirmala Sitharaman helped change the atmosphere around Sri Lanka’s IMF negotiations.
Sabry said IMF regional directors in Washington were initially doubtful about Sri Lanka’s ability to secure support.
India had provided billions of dollars in emergency credit lines during Sri Lanka’s 2022 economic crisis.
Before Sabry’s meeting with IMF leaders, Sitharaman told him she would speak with Managing Director Kristalina Georgieva.
Georgieva reportedly told Sabry that 70–80% of her discussion with Sitharaman focused on Sri Lanka rather than India.
- Who
- Former Sri Lankan Finance Minister Ali Sabry, Indian Finance Minister Nirmala Sitharaman, and officials of the International Monetary Fund, including Kristalina Georgieva and Gita Gopinath.
- What
- Sabry said Sitharaman’s intervention helped improve the atmosphere surrounding Sri Lanka’s negotiations for an IMF programme.
- Where
- Washington, where Sabry met IMF regional directors and later IMF leadership.
- When
- During the negotiations following Sri Lanka’s 2022 economic crisis; Sabry’s meeting with IMF leaders was scheduled for 3:00 p.m.
- Why
- Sri Lanka was seeking international support amid foreign-exchange shortages, high inflation, and shortages of fuel and medicines.
Key facts
- Main speaker
- Ali Sabry, former Finance Minister of Sri Lanka
- Indian official
- Nirmala Sitharaman, Finance Minister of India
- International institution
- International Monetary Fund (IMF)
- Crisis period
- Sri Lanka’s severe economic crisis in 2022
- India’s support
- Billions of dollars in credit lines for essential imports
- Key meeting
- Sabry was scheduled to meet Kristalina Georgieva and Gita Gopinath at 3:00 p.m.
- Reported discussion
- Georgieva said 70–80% of her meeting with Sitharaman focused on Sri Lanka
Quotes
Ali Sabry
Former Sri Lankan finance minister describing his initial discussions with IMF regional directors.
“When I went to Washington, I had a meeting with the regional directors, and they were very negative about Sri Lanka. They said 16 times this has happened. I was disappointed. You know, for the first time, we are trying to tell different things. They were not willing to listen. I thought they lacked empathy.”
wionews.com
“In between this meeting, something happened. I had lunch with Nirmala Sitharaman. She asked me, Minister, how did the meeting go? I said, not that great. I said they were kind of reluctant and had a lot of issues. She said Don’t worry, I will meet Kristalina Georgieva before you. I will put a word.”
wionews.com
Sources
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