IMF Chief Kristalina Georgieva praised Sri Lanka for its economic recovery during talks with President Anura Kumara Dissanayake. She acknowledged the country’s stabilization post-bailout and pledged further support. Dissanayake aims to improve investor conditions and reduce debt, reinforcing ongoing reform initiatives funded by the IMF.
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has affirmed the stabilization of Sri Lanka’s economy while pledging additional assistance during her discussions with President Anura Kumara Dissanayake. Georgieva commended the nation for its significant recovery from a precarious financial situation, emphasizing the positive impact on the populace, particularly those in poverty.
Sri Lanka sought a financial lifeline from the IMF, securing a US$2.9 billion bailout in 2023 after experiencing its first sovereign default in April 2022. The country faced severe economic challenges, including a critical shortage of foreign exchange, leading to economic turmoil. Dissanayake, who has maintained continuity in implementing strict austerity measures from his predecessor, aims to renegotiate the IMF loan terms moving forward.
In her remarks, Georgieva stressed the importance of domestic action to fortify the economy amid global uncertainties, expressing the IMF’s readiness to support Sri Lanka’s successful recovery efforts. Dissanayake indicated his administration’s commitment to reducing the national debt and encouraging private investment through legislative measures designed to ensure investor protection.
Recently, the IMF disbursed US$334 million as the fourth installment in the four-year bailout plan to facilitate reform. The IMF has reported signs of considerable economic recovery, noting that Sri Lanka’s real GDP has recovered approximately 40 percent of the losses it suffered between 2018 and 2023.
In conclusion, the IMF’s acknowledgment of Sri Lanka’s economic stabilization signifies progress following significant turmoil. With ongoing support pledged by the IMF and a focus on reform, Sri Lanka is poised to enhance its economic framework. The commitment to fostering a conducive environment for private investment will be vital for sustainable growth.
Original Source: www.channelnewsasia.com
