IMF is a loan program that can initiate negotiations with Sri Lanka

The International Monetary Fund will initiate discussions with Sri Lankan authorities on a possible loan program in the coming days, IMF spokesperson Gerry Rice said on Thursday (Mar 31), as the Asian country seeks to stave off a severe economic crisis.

Rice said the discussions would continue during the visit of Sri Lankan Finance Minister Basil Rajapaksa in Washington for the spring meetings of the IMF and World Bank next month. He confirmed that Sri Lankan finance minister would visit Washington next month for talks with IMF officials, as reported by Reuters last week.

Sri Lanka - which must pay about USD 4 billion in debt this year - will also seek World Bank assistance after it enters into an IMF program, Reuters reported, citing two sources familiar with the matter.