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IMF praises India's help to Sri Lanka amid ongoing economic crisis

The IMF Managing Director Kristalina Georgieva lauded India's well-targeted policy mix that has helped the Indian economy remain resilient in her meeting with Finance Minister Nirmala Sitharaman. (HT_PRINT)Premium
The IMF Managing Director Kristalina Georgieva lauded India's well-targeted policy mix that has helped the Indian economy remain resilient in her meeting with Finance Minister Nirmala Sitharaman. (HT_PRINT)

  • FM Sitharaman called upon the IMF to support and urgently provide financial assistance to Sri Lanka 
  • The Managing Director assured the Finance Minister that the IMF would continue to actively engage with Sri Lanka, the Ministry stated

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Even while the world faces economic challenges in the face of various waves of Covid-19 pandemic, the International Monetary Fund (IMF) has praised India's resilient economy while underlining the structural reforms carried out by the government in the recent years, as per news agency ANI report.

The IMF Managing Director Kristalina Georgieva lauded India's well-targeted policy mix that has helped the Indian economy remain resilient in her meeting with Finance Minister Nirmala Sitharaman. Georgieva highlighted the resilience of India which remains the fastest-growing country across the globe despite challenges posed by the Covid-19 pandemic.

Additionally, the IMF MD particularly lauded India's help to Sri Lanka in the face of the ongoing economic crisis. Sitharaman called upon the IMF to support and urgently provide financial assistance to Sri Lanka. The Managing Director assured the Finance Minister that the IMF would continue to actively engage with Sri Lanka, the Ministry stated.

Sri Lanka is facing its worst economic crisis since independence with food and fuel shortages, soaring prices and power cuts affecting a large number of the people, resulting in massive protests over the government's handling of the situation.

The economic situation has led to huge protests with demands for the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.

Sitharaman had a bilateral meeting with Georgieva on the sidelines of the IMF-World Bank Spring Meetings. The Finance Minister and the IMF MD were accompanied by senior officials like Anantha V. Nageswaran, Chief Economic Advisor and Gita Gopinath, FDMD of IMF, said the Ministry of Finance in an official statement.

During the meeting, they discussed several issues currently being faced by the global and the regional economies. Georgieva also referred to an effective policy mix followed by India that was well targeted. She lauded India for its contribution to the capacity development activities of the IMF, the Ministry added in the statement.

Explaining India's policy approach, Sitharaman mentioned that an accommodative fiscal stance was also accompanied by major structural reforms, including the bankruptcy code and targeted help to MSME and other vulnerable sections.

Sitharaman said that Monetary Authority fully supported and complemented these efforts with an accommodative stance. The Finance Minister further stated that India has been helped by good agricultural output, supported by a good monsoon during the COVID pandemic period. Agricultural exports, along with other exports, have also sharply increased. India is entering into new economic activities which will help resolve some of the global supply chain issues, she added.

(With inputs from agencies)

 

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