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.
Thousands of visitors gathered in Sri Lanka's capital, Colombo, to see the spectacular annual spiritual festival. The streets came alive with elephants, vibrant lights, energetic dancers, and a display of tradition - making it a night to remember.
Sri Lanka reported nearly 50,000 dengue cases in 2024, with 24 fatalities and a case fatality rate of 0.05%. The Western Province accounted for 44.1% of cases. In January 2025 alone, 2,045 cases have already been recorded, highlighting ongoing public health challenges.
On the 20th anniversary of the 2004 Indian Ocean tsunami, survivors and families across Southeast and South Asia gathered to honour the 230,000 victims. Memorials were held in Indonesia, Sri Lanka, India, and Thailand, where emotional tributes and prayers were offered.
Harini Amarasuriya was reappointed as Sri Lanka's prime minister by President Anura Kumara Dissanayake. Dissanayake also appointed Vijitha Herath as foreign minister after his coalition won 159 seats in the general election. Despite strong, concerns remain over implementing IMF-backed reform.
Wisconsin Attorney General Josh Kaul has filed a lawsuit to stop Elon Musk from giving $2 million to voters ahead of the state’s Supreme Court election, calling it a violation of state election laws.
Severe storms have brought deadly floods to the Texas–Mexico border, killing at least four people and forcing hundreds into shelters.
M23 rebel leaders have arrived in Qatar for further talks with mediators, following an earlier meeting between the presidents of DRC and Rwanda.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Russian President Vladimir Putin has suggested placing Ukraine under temporary UN administration before negotiations on a peace deal can begin.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
As the world shifts toward clean energy at an ever-accelerating pace, large economies are scrambling to secure reliable supply chains for rare earth minerals. These minerals, once seen as mere industrial components, have become a political tool in the global power struggle
Russian forces carried out a drone attack on Ukraine’s second-largest city, Kharkiv, late Wednesday, injuring at least twenty one people and causing structural damage, according to Ukrainian officials.
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
The Trump administration is importing eggs from Türkiye and South Korea to address shortages and record-high prices caused by a severe bird flu outbreak.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Popular coffee brands are negotiating price hikes with retailers due to a sharp rise in arabica costs, with some supermarket shelves running out of stock. Prices may increase by up to 25% as companies grapple with supply chain pressures.
Zhang Yiming, the founder of Bytedance and owner of TikTok, has become China’s richest person, according to multiple wealth rankings. Bloomberg Billionaires Index places him as the world’s 24th wealthiest individual, with his fortune estimated between $57.5 billion and $65.5 billion.
Canada has suspended Tesla rebate payments and barred the automaker from future EV incentives due to U.S. tariffs. Transport Minister Chrystia Freeland said the freeze will remain until claims are individually reviewed.
China has strongly criticized U.S. President Donald Trump's recent executive order, which threatens to impose a 25% tariff on all goods imported to the U.S. from any country that imports oil from Venezuela.
Wisconsin Attorney General Josh Kaul has filed a lawsuit to stop Elon Musk from giving $2 million to voters ahead of the state’s Supreme Court election, calling it a violation of state election laws.
Severe storms have brought deadly floods to the Texas–Mexico border, killing at least four people and forcing hundreds into shelters.
M23 rebel leaders have arrived in Qatar for further talks with mediators, following an earlier meeting between the presidents of DRC and Rwanda.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Russian President Vladimir Putin has suggested placing Ukraine under temporary UN administration before negotiations on a peace deal can begin.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment