IMF chief hails India’s aid to Sri Lanka during economic crisis

New Delhi: On Monday, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), hailed India’s assistance to Sri Lanka in tackling the economic crisis facing the country. She also assured Finance Minister Nirmala Sitharaman that the financial institution would continue to actively engage with the island nation.

Georgieva said this during a speech at the IMF and World Bank (WB) Spring Meetings in Washington DC with Sitharaman.

During the meeting, Sitharaman and Georgieva expressed concerns about its impact on the global economy and challenges from rising energy prices.

Since independence, Sri Lanka has faced the worst economic crisis with food and fuel shortages, soaring prices and power cuts affecting large numbers of people, leading to massive protests over the handling of the situation. by the government.

The economic situation has sparked widespread protests, with Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa being called on to step down.

Georgieva congratulated India on the success of its vaccination campaign. She also praised India for extending its humanitarian aid to other vulnerable countries, according to the finance ministry.

Georgieva hailed India’s well-targeted policy mix for helping India’s economy remain resilient, according to the ministry.

Both Georgieva and Sitharaman stressed that capital spending should support economic growth. The Union Minister focused on the fact that India’s accommodative fiscal policy, accompanied by major structural reforms and strong monetary policies, helped boost India’s post-pandemic recovery, said the Ministry.

The Union Minister arrived in Washington on an official visit to attend the World Bank’s Spring Meetings, as well as the G20 Finance Ministers’ Meeting and the Central Bank Governors’ Meeting (FMCBG).

Besides his official engagements with the World Bank, IMF, G20 and Financial Action Task Force (FATF), Sitharaman also attended an event at the Atlantic Council, a Washington DC-based think tank on Monday.

Several bilateral interactions, including with Indonesia, South Korea, Sri Lanka and South Africa, as well as a high-level meeting with World Bank President David Malpass will be included in the visit, said a statement from the Ministry of Finance.

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