IMF funds can be used for fiscal support | Sunday Observer

IMF funds can be used for fiscal support

22 March, 2023

In an interview with Bloomberg, Central bank governor Nanadalal Weerasinghe has said that the International Monetary Fund (IMF) is allowing Sri Lanka to utilise the bailout fund for fiscal support unlike previous loans which could only be used to address balance of payments crises. Which means, CBSL can buy forex and release Sri Lankan rupees in the same amount to the government for expenditure purposes.

Reuters has quoted the Bloomberg report saying that "In line with IMF fiscal deficit targets, instead of raising money from domestic markets, they can use that money to finance the budget,"