IMF loan Archives

Sri Lanka’s Recovery – By Tilak S Fernando Sri Lanka was in a severe economic catastrophe before the IMF came to a rescue with $2.5 billion in four stages. Unfortunately, the opposition parties did not assist the Ranil Wickremasinghe government. The President endeavoured to clear the fuel station queues and people lining up at gas stations for petrol & kerosine. However, credit should go to President Ranil Wickremasinghe for evading a complete collapse of the economy. IMF loan is not a happy occasion to celebrate with a “kiri bath” and crackers. At least, Sri Lankans should treat this as a life-saving move for the country as it serves as a breathing space for Sri Lanka. Bankruptcy. Sri Lanka failed to pay the overseas commitments in April 2023, and the nation was declared bankrupt. This was significantly due to expatriate income, the reduction from $437 million to $ 259 in the ...

Will the elation be short lived ? – By Aubrey Joachim There was dancing and jubilation in the streets. Firecrackers were lit in the suburbs. It was reminiscent of 1996 – when Sri Lanka’s national cricket team won the World Cup. Actually it was March 20th 2023 the day the ‘lender of last resort’, the International Monetary Fund – IMF – finally approved its life-line to the country a year after it defaulted on its loans and bonds. The 3 Billion Dollar loan is merely a trickle of what is needed and will just about keep the patient alive on life support. It is being drip fed in 9 tranches over 4 years, subject to strict conditions that the IMF will closely audit and scrutinise every 6 months. This is the 17th time that Sri Lanka has obtained an IMF rescue package – most of the previous have been aborted. ...