Sitharaman and the top level Indian economic delegation met Sabry at the IMF headquarters in Washington on Monday.

 

"Sitharaman has assured Sabry on India's full support to Sri Lanka to move forward and has emphasised on India's commitment to strengthen the development of the economy in Sri Lanka and building stronger bonds between the two nations as they move forward together," the ministry said in a statement.

 

Sri Lanka has made a request for a Rapid Financing Instrument (RFI) with the IMF and the world financial body has in turn informed the country's Finance Minister that India had also made representations on behalf of Sri Lanka for an RFI.

 

"It had been communicated that IMF will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI," the Finance Ministry said.

 

Sabry, meanwhile, has met IMF's Managing Director Kristalina Georgieva in Washington.

 

The IMF has commended the island nation on the steps already taken by Sri Lanka to mitigate the financial situation and has assured its fullest support. A positive response has also been received to expedite the process to strengthen the support extended towards Sri Lanka, the ministry added.

 

Facing a burning crisis with dried dollar reserves and inflation, Sri Lanka is totally dependant on support of neighbouring countries like India and is depending on an IMF bailout package to avert the worst economic repercussion which would has led to social and political turmoil in the country.

 

With just $1.6 billion in hand, the country's foreign debt obligation for this year exceeds $7 billion. For the first quarter in 2022, India has helped Sri Lanka with nearly $2.5 billion in currency swap and other assistance, including food, fuel and medicines.