Sri Lanka’s central bank governor Nandalal Weerasinghe announced on Sunday that the country’s “dollar crisis” will soon be over, as the International Monetary Fund (IMF) is expected to approve a $2.9 billion bailout package for the country on Monday.
According to Weerasinghe, Sri Lanka will now have sufficient foreign reserves to support essential imports, thanks to the IMF package. He further stated that the package will also have a positive impact on investor sentiment, enabling the country to access more foreign funds and investments, as reported by the Xinhua news agency.
The IMF package is set to include budgetary support to Sri Lanka’s government, marking a new element in IMF lending. The negotiations with the international lender started in 2022, after the South Asian country was hit by a severe economic crisis.
With the approval of the IMF package, Sri Lanka will be able to address its critical foreign currency shortages and reduce its debt burden. The package will provide the country with the much-needed financial support to stabilize its economy and restore investor confidence.
The IMF package is also expected to pave the way for further economic reforms in the country. Sri Lanka will have to implement a series of structural reforms to improve its fiscal and monetary policies, enhance governance, and create a more conducive environment for foreign investment.
The Sri Lankan government has expressed its gratitude towards the IMF for providing the bailout package during these challenging times. The government has promised to implement the necessary reforms to ensure that the country’s economy remains stable and resilient in the long run.
the IMF’s approval of the $2.9 billion bailout package marks a significant milestone in Sri Lanka’s journey towards economic stability. With the package, the country can address its financial challenges and lay the foundation for a sustainable and prosperous future