Sri Lanka enters the New Year with hopes of IMF EFF in1Q 2023
Sri Lanka enters the New Year 2023 with renewed hopes of treating the ailing economy with the International Monetary Fund (IMF) prescription of sugar coating bitter pills, several economic analysts said.
State Minister of Finance Shehan Semasinghe said that the board approval for US$2.9 billion IMF Extended Fund Facility (EFF) could be expected during the first quarter of the New Year helping Sri Lanka to gain economic stability.
This bailout package spanning four years and the process of undertaking IMF-mandated reforms prescribes ‘good housekeeping’ practices and makes it easier for the country to access aid from other bilateral sources.
However Central Bank Governor Nandalal Weerasinghe without mentioning anything about the date of receiving the bailout loan noted that that Sri Lanka is waiting for financing assurances from its bilateral creditors, including India and China, to tap support from the IMF.
Sri Lanka has obtained IMF bailout loans 16 times since 1995-2020 spending more years inside an IMF programme than outside of it while underutilising the total amount of $6.09 billion by $ 702.9 million on seven occasions, Finance Ministry data shows.
All successive governments have taken the IMF loans imposing massive hardships on the people through austerity measures and demand suppression and then reneged on its commitment through an irregular implementation of economic reform programmes agreed upon with the lender, a former Treasury secretary told the Business Times.
The fiscal austerity measures that IMF mandated have massive social costs, and the high interest rates make it difficult for countries to service their debts and the initial conditions, he pointed out.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!