Sri Lanka in talks with AIIB for USD 100 million emergency funding

The China-backed Asian Infrastructure Investment Bank (AIIB) is considering granting USD 100 million in emergency support to Sri Lanka, the country's finance ministry said on Sunday.

Sri Lanka has been reeling under an unprecedented economic crisis that has spiralled into largescale protests, calling for the ouster of Sri Lanka President Gotabaya Rajapaksa.

Sri Lankan Finance Ministry on Sunday said that President of the AIIB Jin Liqun met with Sri Lankan Finance Minister Ali Sabry virtually.

Sri Lanka's envoy to China Palitha Kohona and Secretary to the Treasury Mahinda Siriwardena along with Finance Ministry officials also took part in the meeting.

A discussion was held on the current areas of cooperation and also the managing of the present situation, Sri Lanka's Newswire reported.

Liqun reiterated AIIB's commitment to supporting Sri Lanka and stated that he was confident Sri Lanka will overcome the current issues that it is facing.

"A discussion was held regarding immediate emergency support to Sri Lanka and Liqun stated that AIIB was considering the granting of USD 100 million to Sri Lanka in principle and he will discuss it further with the Board," the Sri Lanka Finance Ministry said in a statement.

"A discussion was also held regarding the medium to long term support to Sri Lanka. Minister Ali Sabry discussed the need for FOREX liquidity support for the state banks of Sri Lanka and requested if such can be provided by AIIB," the statement added.

Sri Lanka is struggling with acute food and electricity shortages, forcing the country to seek help from its neighbours.

The country is unable to buy sufficient fuel and gas, while the people are being deprived of basic amenities as well.

( With inputs from ANI )