Sri Lanka finishing pre-requisites for IMF support

© Reuters. FILE PHOTO: Drivers push auto rickshaws in a line to purchase petrol from a gasoline station amid Sri Lanka’s financial disaster, in Colombo, Sri Lanka, July 29, 2022. REUTERS/Kim Kyung-Hoon

By Uditha Jayasinghe

COLOMBO (Reuters) -Sri Lanka is finishing the pre-requisites to unlock a $2.9 billion bailout from the Worldwide Financial Fund (IMF) and expects speedy approval from the worldwide lender, President Ranil Wickremesinghe mentioned on Saturday.

“We’re efficiently finishing the troublesome stage required to get help from the Worldwide Financial Fund. We count on to get their consent at once,” Wickremesinghe mentioned in his deal with to the nation to mark the seventy fifth Independence Day.

Sri Lanka, caught within the worst monetary disaster since independence from Britain in 1948 triggered by a extreme scarcity of {dollars}, has seen steep inflation, a forex plunge and its financial system slide into recession.

The island of twenty-two million folks has additionally been hit by excessive taxes, a scarcity of important objects reminiscent of drugs and gasoline, and each day energy cuts.

Wickremesinghe, who took over after his predecessor fled the nation and resigned final 12 months after 1000’s of protesters occupied his workplace and residence, has pledged to place the financial system again on observe however warned will probably be an uphill process.

“I do know that lots of the choices I’ve been compelled to take since assuming the presidency have been unpopular …. I’ll proceed this new reform program with the bulk of people that love this nation,” he added.

Sri Lanka is presently centered on getting financing assurances from key bilateral collectors China and Japan. India, the third main creditor, agreed to help debt restructuring final month.

Sri Lanka’s central financial institution estimates an financial turnaround within the second half of 2023 and inflation to achieve single digits by the top of this 12 months.