• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech
IMF approves Sri Lanka’s $2.9bn bailout

IMF approves Sri Lanka’s $2.9bn bailout

March 20, 2023
Facebook down? 7 ways to troubleshoot if the app is not working on your device

Facebook down? 7 ways to troubleshoot if the app is not working on your device

September 27, 2023
Here’s how much Canada’s top athletes make on Instagram

Here’s how much Canada’s top athletes make on Instagram

September 27, 2023
Japanese raider Through Seven Seas out to make waves in Arc

Japanese raider Through Seven Seas out to make waves in Arc

September 27, 2023
Hope-drained candidates meet for a Trump-less debate

Hope-drained candidates meet for a Trump-less debate

September 27, 2023
Why a DevOps approach is crucial to securing containers and Kubernetes

Why a DevOps approach is crucial to securing containers and Kubernetes

September 27, 2023
FDA panel votes against experimental ALS treatment pushed by patients

FDA panel votes against experimental ALS treatment pushed by patients

September 27, 2023
House thwarts hard-right push to gut Ukraine funding

US lawmakers thwart hard-right push to gut Ukraine funding

September 27, 2023
Can Creampies Keep You Young? A Hesitant Inquiry.

Can Creampies Keep You Young? A Hesitant Inquiry.

September 27, 2023
Astronaut Returns Home After an Unplanned Full Year in Space

Astronaut Returns Home After a Record Year-Plus in Space

September 27, 2023
Military families brace for loss of paycheck, services under a government shutdown

Military families brace for loss of paycheck, services under a government shutdown

September 27, 2023
How To Watch Tonight’s Second GOP Presidential Primary Debate Online & On TV

How To Watch Tonight’s Second GOP Presidential Primary Debate Online & On TV

September 27, 2023
Eagles’ Jalen Hurts suggests ‘tush push’ has sparked threats: ‘Heard a guy wanted me hurt for it’

Eagles’ Jalen Hurts suggests ‘tush push’ has sparked threats: ‘Heard a guy wanted me hurt for it’

September 27, 2023
DNYUZ
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Music
    • Movie
    • Television
    • Theater
    • Gaming
    • Sports
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel
No Result
View All Result
DNYUZ
No Result
View All Result
Home News Business

IMF approves Sri Lanka’s $2.9bn bailout

March 20, 2023
in Business, Economy, News
IMF approves Sri Lanka’s $2.9bn bailout
543
SHARES
1.6k
VIEWS
Share on FacebookShare on Twitter

Sri Lanka’s president has said that the International Monetary Fund (IMF) has approved its request for a $2.9bn bailout and the country’s presidency said the programme will enable it to access up to $7bn in overall funding.

The IMF’s board confirmed it has signed off on the loan, which clears the way for the release of funds and kicks off a four-year programme designed to shore up the country’s economy.

The decision will allow an immediate disbursement of about $333m, the IMF said, and will spur financial support from other partners, potentially helping Sri Lanka emerge from its worst financial crisis in decades.

But IMF Managing Director Kristalina Georgieva warned that Colombo must continue pursuing tax reform and greater social safety nets for the poor – and rein in the corruption that has been partly blamed for the crisis.

“I express my gratitude to the IMF and our international partners for their support as we look to get the economy back on track for the long term through prudent fiscal management and our ambitious reform agenda,” Sri Lanka’s President Ranil Wickremesinghe said in a statement on Monday.

The country defaulted on its foreign debt in April 2022 as it plunged into its worst economic downturn since independence because of a major shortage of foreign currency reserves.

The Indian Ocean nation of around 22 million people ran out of cash to finance even the most essential imports, leading to widespread social unrest.

Mass protests over economic mismanagement, acute shortages of food, fuel and medicines, and runaway inflation forced President Gotabaya Rajapaksa to flee the country and resign in July.

Rajapaksa was replaced by President Wickremesinghe, who has implemented tough spending cuts and tax hikes in an attempt to secure IMF assistance.

IMF staff had provisionally approved the bailout in September, but the final green light was held up until China, the island’s biggest bilateral lender, agreed to restructure its loans to Colombo.

Beijing had said this year that it was offering a two-year moratorium on its loans to Sri Lanka, but the concession fell short of IMF expectations for the sustainability of the island’s debt.

Wickremesinghe had said after China agreed to restructure its loans that he expected the first tranche of the IMF package would be made available within the month.

Earlier on Monday, Wickremesinghe’s office said he was seeking a 10-year moratorium on Sri Lanka’s foreign debt as the country was out of foreign reserves to service its loans.

Officials involved in the negotiations said the terms of debt restructuring must be finalised and agreed upon by all parties before June, when the IMF is expected to review the bailout programme.

Wickremesinghe’s office said in a statement that the IMF programme will help improve the country’s standing in international capital markets, making it attractive for investors and tourists.

Wickremesinghe told the country’s parliament earlier that 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.

Call to tackle corruption

Colombo is also banking on the IMF deal to unfreeze billions of dollars in foreign aid for projects suspended since Sri Lanka defaulted on its loans last year.

The government has already doubled taxes, increased energy tariffs threefold and slashed subsidies in an effort to meet the preconditions of the IMF bailout.

The austerity measures have also led to strikes that halted the health and logistics sectors last week. Wickremesinghe has said he had no alternative but to go with an IMF programme.

Georgieva said Sri Lanka must stick with its controversial tax reforms, manage government expenditure and do away with energy subsidies.

In a statement, she said that “the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor”.

She also urged Colombo to tackle endemic corruption.

“A more comprehensive anti-corruption reform agenda should be guided by the ongoing IMF governance diagnostic mission that conducts an assessment of Sri Lanka’s anti-corruption and governance framework,” she said.

Sri Lanka’s economy shrank by a record 7.8 percent last year as it grappled with its worst foreign exchange shortage since independence from Britain in 1948.

The post IMF approves Sri Lanka’s $2.9bn bailout appeared first on Al Jazeera.

Share217Tweet136Share

Trending Posts

Swedish furniture maker IKEA to open first Colombia store

Swedish furniture maker IKEA to open first Colombia store

September 27, 2023
Trump’s Lawyers Try to Grasp the Implications of Judge’s Fraud Ruling

Will a Judge’s Fraud Ruling Dismantle Trump’s New York Empire?

September 27, 2023
Five things to watch out for at the Republican primary debate

Five things to watch out for at the Republican primary debate

September 27, 2023
Hunter Biden: Looking at that laptop that wasn’t mine violated my privacy

Hunter Biden: Looking at that laptop that wasn’t mine violated my privacy

September 27, 2023
Judge dismisses Masters winner Reed’s defamation lawsuits

Judge dismisses Masters winner Reed’s defamation lawsuits

September 27, 2023
In Alabama, White Tide Rushes On

In Alabama, White Tide Rushes On

August 22, 2023

Copyright © 2023.

Site Navigation

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Gaming
    • Music
    • Movie
    • Sports
    • Television
    • Theater
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel

Copyright © 2023.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT