Sri Lanka to replace 'unrealistic' budget, in talks to extend World Bank aid

FILE PHOTO: Ali Sabry, newly appointed minister of finance, speaks during an interview with Reuters, amid the country's economic crisis in Colombo, Sri Lanka, April 9, 2022. REUTERS/Dinuka Liyanawatte/File Photo

COLOMBO (Reuters) -Sri Lanka plans to replace its current "unrealistic" budget and is in talks with the World Bank to extend its support by $300 million to $700 million, the country's finance minister said on Wednesday.

The island nation, hit hard by COVID-19 and short of revenue after steep tax cuts by President Gotabaya Rajapaksa's government, is critically short of foreign exchange and has sought an emergency bailout from the International Monetary Fund.