AIIB may give Lanka $100m in emergency funding

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

Sri Lanka has requested foreign-exchange liquidity support for state banks from the lender, it said in a statement.

Hit hard by the pandemic, rising oil prices and populist tax cuts by the government of President Gotabaya Rajapaksa, the South Asian island's economy is in crisis, with usable foreign reserves down to $50 million, Finance Minister Ali Sabry said last week.

Shortages of imported food, fuel and medicines have brought thousands onto the streets in over a month of mostly peaceful protests. Rajapaksa declared a second state emergency in five weeks on Friday.