Colombo

Sri Lankan Prime Minister Wickremesinghe said on Wednesday that he will hold discussions with the International Monetary Fund (IMF) and arrive at an agreement to obtain an additional credit facility for the crisis-ridden island nation.

 "The only safe option before us now is to hold discussions with the International Monetary Fund. In fact, this is our only option. We must take this path," PM Ranil Wickremesinghe said while addressing the country’s Parliament.

Sri Lanka is facing a huge financial crisis following months of shortages of food, fuel and electricity.

The situation has reached a stage where the country cannot even purchase imported oil.

The IMF team arrived in Sri Lanka on Monday to hold discussions about easing the economic situation in the country.

Wickremesinghe lauded the assistance provided by India, however, he said, "financial assistance provided by India is not "charitable donations" and the island nation facing severe economic crisis must have a plan to repay these loans."

The nearly-bankrupt country, with an acute foreign currency crisis that resulted in foreign debt default, had announced in April that it is suspending nearly USD 7 billion foreign debt repayment due for this year out of about USD 25 billion due through 2026. Sri Lanka's total foreign debt stands at USD 51 billion.

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The Lankan PM said his government is also holding discussions with the World Bank, Asian Development Bank, and the United States to secure short-term loans to ease the situation.