Islamabad, Sep 24: The International Monetary Fund IMF Ready for Talks with Sri Lanka’s new government, led by President Anura Kumara Dissanayake, regarding the country’s $2.9 billion bailout program.
Dissanayake, the first leftist president of Sri Lanka, has indicated a desire to renegotiate the terms of the deal, which has implemented unpopular austerity measures.
An IMF spokesperson expressed a willingness to collaborate with the new administration, recognizing the economic recovery Sri Lanka has made since defaulting on its debt in April 2022. The IMF Ready for Talks with Sri Lanka’s new government to discuss the timing of the third review of the bailout program with the new government.
Bimal Ratnayake, a senior aide to the president, clarified that while the IMF deal will not be scrapped, amendments are planned, including potential reductions in income taxes and sales taxes on essential goods like food and medicine.
Despite initial concerns about the impact of Dissanayake’s presidency on the IMF deal, the Sri Lankan stock market showed resilience, recovering from early losses to close 1.19% higher on Monday. The new government aims to balance fiscal adjustments with economic stability while maintaining the IMF program.
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