Sri Lanka to Proceed with Third Review of Nearly $3 Billion IMF Bailout, According to Reuters

Sri Lanka Pursues Progress on IMF Support Program Amid Economic Challenges

COLOMBO (Reuters) – Sri Lanka is set to proceed with the third review of its nearly $3 billion support program from the International Monetary Fund (IMF), as the new government aims to navigate the island nation out of its most severe financial crisis in recent history.

Recently elected president Anura Kumara Dissanayake has committed to reducing taxes as part of the IMF program. In a meeting with an IMF team in Colombo, he expressed the government’s agreement with the overarching goals of the program, while also indicating a desire to reassess the value-added tax and direct income tax in order to alleviate financial pressure on citizens.

Completing this third review is essential for Sri Lanka, as it is required to unlock approximately $337 million in funds and facilitate the finalization of a $12.5 billion debt restructuring deal with bondholders.