Economics
Sri Lanka Is Facing ‘Clear Solvency Problem’: IMF Report
- Debt issues seen constraining growth, jeopardize economy
- Negotiations on possible IMF support to start in April
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Sri Lanka faces “solvency” issues because of risks stemming from unsustainable debt levels that jeopardize the nation’s economy, according to International Monetary Fund staff.
“Based on staff analysis, the fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem,” the IMF said in its Article IV consultation report, released Friday in Washington.