Press briefing of Cabinet Decision taken on 2020-02-12

Providing Sri Lanka's contribution to the possible Financing Package for Arrears Clearance and Debt Relief for Somalia to support its reform process in the form of a grant utilizing the International Monetary fund (IMF) Internal Resources apportioned to its Member Countries

The International Monitory Fund's burden sharing mechanism is a policy approved by the Executive Board of the International Monetary fund (IMF) in 1986 and this methodology has been adopted to reimburse the loss of income due to unpaid charges by members for various reasons. Accordingly, a request has been made to the member countries to contribute part or all of their respective shares in the IMF internal resources to support 'Somaliya - Possible Financing Package for Arrears Clearance and Debt Relief' for Somaliya approved by the Executive Board of the Fund in December 2019. The Central Bank of Sri Lanka and the Ministry of Foreign Relations have expressed their concurrence to provide Sri Lanka's contribution. Accordingly, the proposal made by the Minister of Finance, Economy and Policy Development, to transfer a sum equalant to Rs.163 million as Sri Lanka's total contribution to the Somaliya Administered Account, was approved by the Cabinet.