• About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

Riya Thomas by Riya Thomas
March 21, 2023
in Economy, Top Stories
Reading Time: 3 mins read
0
Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

30
SHARES
165
VIEWS
FacebookTwitterRedditWhatsAppLinkedInFacebook

IMF’s bailout would pave the way for Sri Lanka to restructure its economy, provide relief from the debts, and assist in overall economic improvement by 2024

Sri Lanka secures a $3 billion bailout from the International Monetary Fund (IMF) after a year of what could be said as the worst economic crisis since the country’s independence. The debt-driven economy was shattered for the past year the deal provides a lifeline to the billions of people of the country from the brink of ruins. IMF’s bailout would pave the way for Sri Lanka to restructure its economy, provide relief from the debts, and assist in overall economic improvement by 2024.

The International Monetary Fund’s decision would provide the country with an immediate distribution of a $333 million credit for over four years. Ali Sabry, Foreign Minister stated that the government will raise funds by privatizing the national airline and restructuring the state-owned enterprises, reports BBC. Experts, on the other hand, warn Sri Lanka that the nation will still face difficulties in terms of managing the economy. IMF Asia and Pacific director, Krishnan Srinivasan stated that Sri Lanka had been hit by a catastrophic economic and humanitarian crisis.

A brief look into Sri Lankan Crisis

 The political crisis in Sri Lanka devoured the economy and had people struggling with shortages of food, fuel, and medicines. Inflation soared up more than 50% along with extreme fuel shortages. The country didn’t have enough fuel for essential services like public transportation, and the country had little or no foreign currency left to import more causing the diesel and petrol prices to drastically increase.

It got worse to a point that the government had to restrict the selling of fuel only to essential vehicles. The foreign debt of the country began to pile up and it didn’t have enough to pay back. This inability to pay back debt caused the country’s reputation with investors which made it even harder to borrow.

After the announcement of the IMF bailout, Wickremasinghe stated that the country is committed to reform agendas and IMF’s help is aiding to achieve the nation’s goals.

The IMF program is critical to achieving this vision, and we are committed to successfully completing it to achieve debt sustainability. I encourage our bilateral and commercial creditors to strengthen and foster coordination in the context of forthcoming engagement.

— Ranil Wickremesinghe (@RW_UNP) March 21, 2023

Krishna Srinivasan also stated that the main aim of the IMF loan is to deal with macroeconomic stabilization and rebuild debt sustainability in the short term. “But going beyond that, the program also aims to mitigate the impact of the crisis on the poor and vulnerable,” added Srinivasan    

Sri Lanka earlier this year, had to take up some drastic measures to bring the economy under control. The country increased taxes for essential items including food and fuel and also introduced income taxes for professionals in a range of 12.5% to more than 36%.

S&P Global Ratings Agency analyst Andrew Wood stated that Sri Lanka has a long way to go to have a consolidated government balance sheet, external stability, and consistent economic growth. “We expect the economy to contract again in 2023, albeit at a more modest pace, before returning to growth in 2024,” stated Andrew Wood. IMF recently announced that Sri Lanka had gained financing promises from China and India which is also a major reason for this bailout.

Including the present one, this will be the 17th time that Sri Lanka has approached the IMF for a bailout. Experts add that this is a different crisis from the previous ones and the primary objective now is to restore debt sustainability.

Source: short URL
Tags: AsiaAsia and Pacificeconomic crisisIMFSri Lanka
Riya Thomas

Riya Thomas

Related Posts

NVIDIA and Amazon Forge Major AI Alliance
Technology

NVIDIA and Amazon Forge Major AI Alliance 

by The Global Economics
November 29, 2023
Tadawul Launched Single Stock Options
Markets

Tadawul Launched Single Stock Options 

by The Global Economics
November 28, 2023
China’s Visa-Free Policy Expansion to Benefit Five European Countries and Malaysia
Tourism

China’s Visa-Free Policy Expansion to Benefit Five European Countries and Malaysia

by Riya Thomas
November 28, 2023
Somalia’s Long-Awaited Integration Into the East African Community
Top Stories

Somalia’s Long-Awaited Integration Into the East African Community

by The Global Economics
November 27, 2023
Zhongzhi Headed for Insolvency With a Debt Mountain of $64 Billion
Wealth & Asset Management

Zhongzhi Headed for Insolvency With a Debt Mountain of $64 Billion

by The Global Economics
November 24, 2023
Previous slide
Next slide
Previous slide
Next slide
Previous slide
Next slide
Previous slide
Next slide
Twitter Youtube LinkedIn Soundcloud
the global economics logo

The Global Economics Limited is a UK based financial publication and a Bi-Monthly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

NVIDIA and Amazon Forge Major AI Alliance

NVIDIA and Amazon Forge Major AI Alliance 

November 29, 2023
Tadawul Launched Single Stock Options

Tadawul Launched Single Stock Options 

November 28, 2023
China’s Visa-Free Policy Expansion to Benefit Five European Countries and Malaysia

China’s Visa-Free Policy Expansion to Benefit Five European Countries and Malaysia

November 28, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version