COLOMBO : Sri Lanka's finance minister said on Friday that its neighbour India and the World Bank are considering extending about $2 billion in bridge finance so it can continue essential imports.
Sri Lanka, which has $51 billion of external credit, is working on a wider plan to secure funds to help it through its worst economic crisis, with prolonged power cuts and shortages of fuel and medicines that have sparked nationwide protests. India has already agreed to double an existing $500 million credit line for fuel and defer about $1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union. It has also extended the tenure of a $400 million swap given in January, the Indian High Commission said on Friday.
Sabry is in Washington leading a Sri Lankan delegation to negotiate a programme with the International Monetary Fund . He said talks had started on an Extended Fund Facility but Sri Lanka was in need of $3 billion to $4 billion in bridge financing till a programme is finalised.