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"The RBI’s very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflows related to imports, debt servicing and, if necessary, support for the currency to avoid disorderly adjustment," CBSL said. "The CBSL acknowledges the very active role played by the Government of India, the Sri Lankan High Commission, in Delhi, and the Indian High Commission, in Colombo, in facilitating these arrangements," The Central Bank said that with the end of the delays related to the political developments in the country, the Government of Sri Lanka and the CBSL have also already revived action to: (i) issue international sovereign bonds; (ii) obtain term loans; and (iii) negotiate credit lines through the State banks on behalf of the GoSL. "It is expected that these operations will be completed in 1Q 2019.
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In addition, the Finance Minister will be visiting Washington (14 – 16 Jan) to resume negotiations with the IMF on the Extended Fund Facility."