WASHINGTON: The International Monetary Fund will initiate discussions with Sri Lankan authorities on a possible loan program in coming days, IMF spokesperson Gerry Rice said on Thursday, as the Asian country seeks to stave off a severe economic crisis.

Rice said the discussions would continue during the visit of Sri Lankan Finance Minister Basil Rajapaksa in Washington for the spring meetings of the IMF and World Bank next month. A 70% drop in foreign exchange reserves since January 2020 has left Sri Lanka struggling to pay for essential imports, including food and fuel, leading to growing unrest and even military deployments at gasoline stations.