Creditor cooperation a must for Sri Lanka IMF programme: Govt

Colombo: The Sri Lankan government has said that cooperation from the island nation's creditors would be key to gaining a much-needed bailout from the International Monetary Fund for the bankrupt country.

On September 1, the International Monetary Fund (IMF) announced that it will provide Sri Lanka with a loan of about $2.9 billion over a four-year period to help the island nation overcome the unprecedented economic turmoil.

The bailout package is expected to boost the country's credit ratings and the confidence of international creditors and investors.

At an online engagement with the creditors, the government on Friday said that assurances from bilateral creditors are required as a prerequisite to the International Monetary Fund board adoption

of the programme.

It is expected to materialise by mid-December.

The International Monetary Fund does not lend to countries whose debt is deemed unsustainable, requiring Sri Lanka to undertake an upfront comprehensive debt

treatment.