Sri Lanka's IMF Bailout: A New Era of Economic Reform

The new NPP government of Sri Lanka secured IMF approval for a crucial tranche of its $3 billion bailout, reinforcing economic reforms despite initial opposition. President Anura Dissanayake confirmed commitment to the program, initiated amid crisis, to stabilize the nation's economy, tackling corruption, and ensuring sustainable growth.

The International Monetary Fund (IMF) has given Sri Lanka's new National People's Power (NPP) government the green light for a crucial staff-level agreement. This approval secures the fourth tranche of an almost USD 3 billion bailout package, aimed at stabilizing the island nation's economy.

President Anura Kumara Dissanayake, having criticized the bailout pre-election, affirmed his support for the program, ensuring policy continuity. Under his administration, the IMF reforms have begun showing results, with the economy growing by an average of four percent through mid-2024.

While the debt restructuring deal from the previous administration remains pending, Dissanayake has pushed for accountability in governance. The IMF emphasized the need for continued reform to address corruption risks and boost confidence, paving the way for robust, inclusive economic growth.

(With inputs from agencies.)