Sri Lanka has received the first tranche of an IMF bailout program, President Ranil Wickremesinghe told parliament
The crisis-ridden island nation was scheduled to receive a $330 million tranche, the first part of a nearly $3 billion bailout"This sets the stage for Sri Lanka to have better fiscal discipline and improved governance," Wickremesinghe said.
The IMF bailout is expected to catalyse additional support to the tune of $3.75 billion from the likes of the World Bank, the Asian Development Bank and other lenders. It clears the way for Sri Lanka to rework a substantial part of its $84 billion worth of public debt.that Sri Lanka is ready to engage in restructuring talks with bilateral and private creditors to recover debt sustainability as "soon as possible.
This was the 17th IMF bailout for Sri Lanka and the third since the country's decades-long civil war ended in 2009. Economic mismanagement coupled with the impact of the COVID-19 pandemic left Sri Lanka severely short of dollars for essential imports at the beginning of last year, tipping the island nation into its worst financial crisis in seven decades.
Reporting by Uditha Jayasinghe; Writing by Shilpa Jamkhandikar; Editing by Clarence Fernandez and Raju Gopalakrishnan
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