IMF Chief Kristalina Georgieva praised Sri Lanka’s economic stabilization during a virtual dialogue with President Anura Kumara Dissanayake. The IMF has committed to supporting Sri Lanka’s efforts after providing a US$2.9 billion bailout post-sovereign default. The nation’s GDP is reportedly recovering significantly, which bodes well for future economic prospects.
During a virtual meeting, IMF Managing Director Kristalina Georgieva commended Sri Lanka’s economic recovery, noting a “remarkable turnaround” since the country faced severe economic challenges. She highlighted the importance of stabilizing the economy for the welfare of the citizens, particularly the most vulnerable. The International Monetary Fund has pledged continued support for Sri Lanka’s recovery efforts as it navigates through these complex times.
Sri Lanka received a crucial US$2.9 billion IMF bailout in 2023 after experiencing its first sovereign default in April 2022, largely due to a significant foreign exchange crisis. President Anura Kumara Dissanayake, who assumed office in September, initially promised to renegotiate the IMF agreement but has continued implementing stringent austerity measures initiated by his predecessor, aiming to stabilize the economy further.
Georgieva emphasized the need for domestic actions to strengthen the economy amidst global uncertainties, stating that the IMF is “very happy and eager to back you fully” in Sri Lanka’s recovery journey. Dissanayake expressed his commitment to reducing national debt and encouraging private investment through legislative improvements, such as the proposed Investor Protection Act.
Recently, the IMF disbursed US$334 million, marking the fourth installment of the bailout loan, to assist Sri Lanka’s reform program. Reports indicate that the economic recovery in Sri Lanka has been significant, with the GDP recovering approximately 40% of the losses incurred from 2018 to 2023.
In conclusion, the IMF chief’s remarks reflect a positive outlook on Sri Lanka’s economic recovery, marking a vital shift from past crises. The continued support from the IMF, alongside the government’s commitment to reforms and investment, illustrates significant steps towards stabilization and growth. This collaborative effort aims to not only revive but also strengthen the nation’s economy, ensuring a better future for its citizens.
Original Source: www.channelnewsasia.com
