Sri Lanka is expecting a mission from the International Monetary Fund (IMF) in two weeks, President Ranil Wickremesinghe announced at a campaign rally in Homagama on Wednesday.
“In two weeks when the IMF team comes, we must either confirm that we will implement the agreement and receive the next installment, or inform them of any changes, which could delay the payment. If that happens, the rupee may fall to 500 against the dollar,” President Wickremesinghe warned.
The president emphasized the importance of adhering to the IMF agreement to prevent further economic instability. Sri Lanka’s interest rates have already begun to rise due to political uncertainty, and the rupee has shown signs of weakening, with kerb market rates spiking over the weekend.
Wickremesinghe also pointed out that currency collapses often occur when central banks attempt to resist market-driven interest rate pressures by using tactics such as reverse repo operations or printing money to maintain short- or long-term rates. He added that Sri Lanka is still working towards reaching an agreement with private creditors as part of the debt restructuring process.