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Mangala travels to Washington over IMF loan reinstatement

Sri Lanka's finance minister, Mangala Samaraweera is to travel to Washington tomorrow with the aim of getting the next stage of the International Monetary Fund's (IMF) External Fund Facility (EFF). 

The visit comes after weeks of Sri Lanka's political crisis left the country with a falling rupee and halting of international funding. 

“A key objective will be to negotiate the trajectory of continued fiscal consolidation while accommodating policies to support growth and strengthen the social safety net,” Sri Lanka's Finance and Mass Media Ministry said in a statement. 

The country's Central Bank Governor Dr Indrajit Coomaraswamy and the Treasury Secretary, R H S Samaratunga are to accompany Samaraweera. 

The IMD disbursed US $1 billion of the $ 1.5 billion three year EFF loan that was agreed in 2016. 

Coomaraswamy said this week, Colombo may look to extend a loan agreement. 

"There is a provision for the Extended Fund Facility (EFF) to be extended by a year," said Indrajit Coomaraswamy. "The government could negotiate if it wants to."