2023-12-12 20:00:11
The International Monetary Fund (IMF) said its board approved the first revision of Sri Lanka’s bailout package of around $3 billion on Tuesday, providing around $337 million in funds to help fight the fallout from the worst financial crisis the country has seen in decades.
The South Asian island nation is recovering from its worst financial crisis since independence in 1948, which sent the economy into a tailspin last year with soaring inflation, currency depreciation and low reserves in currencies.
The total amount sent to Sri Lanka so far is around $670 million, according to the IMF.
“It is important to quickly conclude and sign the memorandums of understanding with official creditors. The rapid implementation of the agreements, as well as the conclusion of an agreement with external private creditors under comparable conditions, should help restore Sri Lanka’s debt sustainability in the medium term,” said Kenji Okamura, Deputy Managing Director of the IMF.
The economy, however, began to stabilize following Sri Lanka secured a bailout from the global lender in March. The country reached an agreement with IMF staff during its first review in October, but had to wait for board approval until an agreement was reached with bilateral creditors to restructure part of of its external debt.
Sri Lanka’s parliament on Monday approved an increase in value added tax (VAT) from 15% to 18%, in order to meet revenue targets set under the IMF program.
1702438620
#IMF #board #approves #review #Sri #Lankas #billion #bailout #plan
