The International Monetary Fund (IMF) said that it is ready to discuss options for Sri Lanka to deal with its debt burden, IMF spokesman Gerry Rice said on Thursday.
Rice told that next week’s G20 finance leaders’ meeting in Indonesia will look for progress on IMF proposals to strengthen a G20 debt restructuring framework.
The proposals include an immediate debt service standstill for countries that seek debt restructuring and specific timelines for completing debt restructurings.
Financial analysts believe that under any IMF programme Colombo will have to make painful adjustments and raise interest rates and taxes while cutting government spending.
Meanwhile, it seems that Colombo remains undecided on approaching the IMF as a snap election may be around the corner.
The ruling party may fear that IMF proposals to restructure may not be popular among the voters. Meanwhile, former prime minister Ranil Wickremasinghe said that if finance minister Basil Rajapaksha is to approach the IMF he should not be opposed.