Sri Lanka’s new government gets IMF approval for fourth tranche of USD 3 billion bailout package 

Altogether, the IMF has extended the land federation an Extended Fund Facility (EFF) of USD 2.9 billion.

On Thursday, President Anura Kumara Dissanayake, who heads the National People’s Power (NPP), affirmed his administration’s committedness to proceed the IMF bailout programme initiated by the erstwhile authorities led by Ranil Wickremesinghe Dissanayake, contempt his pre-presidential predetermination rhetoric to renegotiate with the planetary lender to h2o down pugnacious conditions laid down for the recovery, backed the woody successful his inaugural code to the recently convened parliament aft his party’s landslide triumph successful the parliamentary polls past week.

In the run-up to the September statesmanlike predetermination — astatine which Wickremesinghe was defeated — Dissanayake was captious of the bailout, particularly its rigid reforms, which the enactment claimed made the past incumbent 75-year-old president unpopular.

Sri Lanka tapped the IMF for a installation astatine the tallness of the economical situation nether the presidency of Gotabaya Rajapaksa, the president who was made to fly the state by months-long nationalist protests. Mid April of 2022 Sri Lanka announced its first-ever indebtedness default.

The negotiations with the IMF began thereafter and the Wickremesinghe’s authorities clinched the bailout, a twelvemonth aboriginal successful March 2023.

On Saturday, the IMF said, “The caller government’s committedness to the programme’s objectives has enhanced assurance and ensures argumentation continuity.” The IMF stressed that Sri Lanka’s betterment docket was delivering results.

“The system expanded connected mean by 4 per cent successful the 4 quarters ending June 2024,” the Washington-based wealth lender said.

It said Sri Lanka reaching an statement with backstage bondholders has enactment indebtedness connected a way of sustainability.
“The caller government’s mandate volition reinvigorate governance reforms addressing corruption risks, rebuilding economical assurance and making maturation much robust and inclusive,” it added.

However, the indebtedness restructuring statement reached successful the past week of the Wickremesinghe presidency is yet to beryllium officially sealed. Debt restructuring statement with some bilateral and sovereign bondholders was made compulsory to support indebtedness sustainability by the IMF.

Earlier, Dissanayake met the IMF’s Sri Lanka ngo main Peter Breuer connected Monday and urged to see the economical hardships faced by the radical and onslaught a equilibrium successful the economical betterment programme.