IMF Managing Director Kristalina Georgieva praised Sri Lanka’s economic recovery during a virtual meeting with President Anura Kumara Dissanayake, pledging continued support. After securing a US$2.9 billion bailout in 2023, the country has displayed a remarkable turnaround, which is crucial for its impoverished population. Dissanayake aims to lessen the island’s debt and enhance private investment through new legislation, supported by ongoing IMF reforms.
In a recent virtual meeting, International Monetary Fund (IMF) Managing Director Kristalina Georgieva commended Sri Lanka for its significant economic recovery, assuring continued support for the nation. President Anura Kumara Dissanayake attended this meeting, where Georgieva highlighted the stability of the Sri Lankan economy, noting, “The economy has stabilised and is now performing well.” This transformation is particularly beneficial for the poorer segments of the population, according to Georgieva.
Sri Lanka had previously experienced a severe economic crisis, leading to a sovereign default in April 2022. In 2023, it secured a US$2.9 billion bailout from the IMF, catalyzing its recovery. President Dissanayake, despite promising to renegotiate terms, has adhered to ongoing austerity measures initially set by his predecessor. Georgieva emphasized the need for domestic action to strengthen the economy amid global uncertainties, stating that the IMF is willing to provide full backing.
Dissanayake expressed his intention to alleviate the country’s debt and encourage private investment, proposing the introduction of favorable legislation, including an Investor Protection Act. The recent disbursement of US$334 million, the fourth installment of the bailout, signals continued support for essential reforms. The IMF has reported that these reforms are yielding positive results, with Sri Lanka’s real GDP recovering a substantial 40 percent of losses from 2018 to 2023.
The article underscores the commendation from IMF chief Kristalina Georgieva regarding Sri Lanka’s economic recovery and the ongoing support pledged by the IMF. President Anura Kumara Dissanayake’s administration is focused on reducing debt and fostering private investment, while the IMF highlights the positive outcomes of economic reforms. This collaboration presents a hopeful trajectory for Sri Lanka’s financial stability and growth.
Original Source: www.channelnewsasia.com
