IMF Endorses Sri Lanka's Economic Recovery Amid Debt Challenges

The IMF has approved the third review of Sri Lanka's $2.9 billion bailout, emphasizing ongoing economic vulnerabilities. The fund released $333 million, increasing the total to $1.3 billion. With signs of recovery, Sri Lanka faces critical steps in debt restructuring to restore sustainability and secure prosperity.

The International Monetary Fund (IMF) has given the green light to the third review of Sri Lanka's $2.9 billion bailout package, although it cautioned that the nation’s economic challenges remain substantial.

Following the review, the IMF approved a release of $333 million, raising the total disbursement to about $1.3 billion. The institution noted signs of an economic upturn but stressed the importance of finalizing debt restructuring and bilateral agreements to reestablish debt sustainability.

Sri Lanka's economy, battered by a severe crisis since 2022, requires persistence in responsible fiscal policy for recovery. The nation, under new leadership, is targeting significant debt restructuring deals by year-end to ensure economic stability.

(With inputs from agencies.)