COLOMBO Sri Lanka is completing the pre-requisites to unlock a $2.9bn bailout from the International Monetary Fund IMF and expects rapid approval from the global lender, President Ranil Wickremesinghe said on Saturday.
We are successfully completing the difficult stage required to get support from the International Monetary Fund. In his address to the nation to mark the 75th Independence Day, Wickremesinghe said that they expect to get their consent without delay.
Sri Lanka, caught in the worst financial crisis since independence from Britain in 1948 triggered by a severe short of dollars, has seen a steep inflation, a currency plunge and its economy slide into a recession.
The island of 22 million people has been hit by high taxes, a shortage of essential items, such as medicine and fuel, and daily power cuts.
Wickremesinghe took over after his predecessor fled the country and resigned last year after thousands of protesters occupied his office and residence, but he has pledged to put the economy back on track, but warned it will be an uphill task.
Since assuming the presidency I know that many of the decisions I have had to take are unpopular. I will continue this new reform program with the majority of people who love this country, he said.
Sri Lanka is focused on getting financial assurances from key Chinese and Japanese creditors. India, the third major creditor, agreed to support debt restructuring last month.
The central bank of Sri Lanka believes that there will be an economic turnaround in the second half of 2023 and inflation to reach single digits by the end of the year.