Kristalina Georgieva, the IMF Managing Director, praised Sri Lanka’s economic recovery during discussions with President Anura Kumara Dissanayake. The IMF pledged further assistance following a $2.9 billion bailout in 2023 after Sri Lanka’s economic crisis and default in 2022. Dissanayake plans to reduce debt and encourage private investment through new legislation, with reports indicating a 40% recovery in GDP since 2018.
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has affirmed her commitment to support Sri Lanka’s economic recovery, acknowledging the country’s significant improvements during virtual discussions with President Anura Kumara Dissanayake. The IMF pledged assistance to the financially strained nation, highlighting a notable economic turnaround since its recent crisis.
During the meeting, Georgieva emphasized the importance of economic stabilization, stating, “The economy has stabilised and is now performing well.” She expressed concern for the welfare of vulnerable populations and recognized the drastic progress made since the country faced near collapse.
Sri Lanka obtained a $2.9 billion bailout from the IMF in 2023 after experiencing its first sovereign default in April 2022, which was triggered by a severe foreign exchange crisis and economic downturn. Despite initially pledging to reassess the IMF arrangements, President Dissanayake has continued with previous austerity reforms.
Georgieva underscored the necessity of domestic actions to fortify the economy amid global uncertainties, stating, “Taking action domestically to strengthen the economy in this time of greater global uncertainty is even more important…” She assured Dissanayake of the IMF’s full support in their successful recovery efforts.
Dissanayake expressed his intentions to alleviate the nation’s debt and foster private investment through proposed legislative measures such as an Investor Protection Act, ensuring a conducive environment for investors. In March, the IMF issued $334 million as the last tranche of its four-year bailout, affirming positive outcomes from the ongoing reforms. Reports indicate that Sri Lanka’s real GDP has rebounded by 40% of the decline experienced from 2018 to 2023.
In conclusion, the IMF’s recognition of Sri Lanka’s economic stabilization marks a significant milestone for the nation. With ongoing support from the IMF, President Dissanayake is focused on reducing debt and attracting private investment. The country’s recovery from last year’s financial crisis demonstrates resilience, laying a foundation for future economic growth. Continued reforms will play a crucial role in sustaining this positive trajectory.
Original Source: www.channelnewsasia.com
