Bonds jump, rupee soars on prospect of IMF deal sign off
Details on China Exim new financing assurances are unclear
Sri Lanka says has completed all prior actions demanded by IMF

COLOMBO, March 7 Reuters Sri Lanka expects final approval from the International Monetary Fund for a 2.9 billion loan in the third or fourth week of this month, the president said on Tuesday, adding that new support from China means all funding requirements had been met.

The country of 22 million people is struggling with its worst economic crisis since independence from Britain in 1948.

President Ranil Wickremesinghe told parliament there were signs the economy was improving but there was still insufficient foreign currency for all imports, making the IMF deal crucial so other creditors could also start releasing funds.

Sri Lanka has completed all prior actions that were required by the IMF, Wickremesinghe said.

He said the ExportImport Bank of China had sent a new letter on Monday, and he and the central bank governor had sent a letter of intent to the IMF.

As a result of this step and financing assurances from India and the Paris Club, we expect approval for the programme either in the third or fourth week of March, he said.

The country39;s international debt and currency roared higher on the news, with bonds adding nearly 3 cents in the dollar while the rupee jumped nearly 8 to a 10month high.

It was not clear what new support China, the world39;s biggest sovereign creditor,…