The IMF has approved the third review of Sri Lanka's $2.9 billion bailout, releasing $333 million in funding. While signs of economic recovery emerge, the country still faces critical debt restructuring challenges to move forward with the programme.
The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the South Asian economy remains vulnerable. In a statement, the global lender confirmed it would release approximately $333 million, bringing the total funding to around $1.3 billion, as signs of an economic recovery emerge.
However, Sri Lanka must still complete a $12.5 billion bondholder debt restructuring and a $10 billion debt rework with bilateral creditors, including Japan, China, and India, to progress with the programme, according to the IMF. The bailout, secured in March of the previous year, helped stabilise the economy after Sri Lanka plunged into its worst financial crisis in over seven decades in 2022.
Maintaining tax revenue and continuing reforms of state-owned enterprises will be critical in achieving the primary surplus target of 2.3% of GDP next year, said IMF Senior Mission Chief Peter Breuer, concluding his delegation’s visit to the capital, Colombo. "The authorities have committed to staying within the guardrails of the programme," Breuer stated. "We have agreed on a package for them to achieve their priorities and objectives and, as soon as that is submitted to parliament, the fourth review process will proceed."
Sri Lanka's new president, Anura Kumara Dissanayake, announced this week that an interim budget would be presented to parliament in December. He hopes to complete the debt restructuring by the end of December.
During the crisis, a severe dollar shortage sent inflation soaring to 70%, the currency plummeted to record lows, and the economy contracted by 7.3% at its worst, followed by a 2.3% decline last year. Recently, the rupee has risen by 11.3%, and inflation has disappeared, with prices falling by 0.8% last month.
The World Bank forecasts Sri Lanka’s economy will grow by 4.4% this year, marking the first increase in three years.
An Iranian tanker was hit by U.S. forces on Saturday near Iran's key oil export hub, Kharg Island, in the Gulf...
Spanish authorities are preparing a new site in Ceuta to accommodate hundreds of migrants who remain on the str...
A Chinese national was pulled alive from a tunnel in Nepal on Saturday, authorities said, 10 days after a wall of ...
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar with the matter said. They were met by Russian Presidential Envoy Kirill Dmitriev.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 4th of September, covering the latest developments.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment