The third assessment of Sri Lanka’s $2.9 billion bailout was approved by the International Monetary Fund (IMF) on Saturday, although the IMF cautioned that the South Asian economy is still vulnerable.
The international lender said in a statement that it would provide the crisis-affected country with roughly $333 million, for a total funding of about $1.3 billion. It said indications of an economic rebound were appearing.
According to the IMF, to move the program forward, the nation still needs to finish a $10 billion debt restructuring with bilateral creditors like China, India, and Japan and a $12.5 billion bondholder debt restructuring.
After cash-strapped Sri Lanka entered its worst financial crisis in over 70 years in 2022, the IMF bailout obtained in March of last year assisted in stabilizing economic conditions.
IMF Senior Mission Chief Peter Breuer concluded a delegation visit to the capital city of Colombo by saying that meeting tax revenue requirements and continuing reforms of state-owned enterprises will be essential to meeting a primary surplus target of 2.3% of GDP next year.
Breuer stated, “The authorities have pledged to adhere to the program’s boundaries.” “We have reached an agreement on a package that will help them accomplish their goals and aspirations, and once it is presented to parliament, the fourth review process.
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