The International Monetary Fund (IMF) declared on Tuesday that it will soon conduct a discussion with Sri Lanka‘s new government led by President Anura Kumara Dissanayake. The meeting will be based on deciding on the timing of the next review for the country’s loan program. The IMF is looking forward to working together with the new government. The aim is to maintain the momentum that has been made since Sri Lanka’s economic recovery from the severe crisis in 2022.
IMF aiming for reforms
The IMF mentioned, ”We are interested in working together with President Dissanayake and his team towards making the hard-won gains that have put Sri Lanka back on the path of economic recovery”. This initiative will be considered as a continuation of efforts that have been implemented during the administration of former President Ranil Wickremesinghe. The third tranche of a $2.9 billion loan was in the process during the presidential election which was announced in July.
IMF disbursement was delayed due to the election
A loan of $360 million was anticipated to be disbursed during the IMF’s third review of Sri Lanka’s recovery plan. However, the review meeting was put back till the recent election which was conducted last week. The credit for organizing successful negotiations with the IMF for the bailout package goes to Wickremesinghe. Sri Lanka’s economic crisis forced people to struggle for basic amenities like food and fuel. The IMF granted a four-year facility followed by strict economic reforms which were mostly executed by Wickremesinghe and also led to his unpopularity among his voter base. The four-year facility granted by the IMF required strict adherence to economic reforms, most of which Wickremesinghe implemented, though these made him unpopular with voters.
(With PTI inputs)