Five-Day Bank Holiday to Cleaning Up Debt: How Sri Lanka Is Steadying Its Economy After IMF Bailout
- Authorities announced strategy to advance talks with creditors
- IMF loan unlocked funds, boosted supplies, supported rupee
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As Pakistan finally secured a long-sought interim deal with the International Monetary Fund, neighboring Sri Lanka is seen to be on its way to steadier ground after a $3 billion IMF bailout in March.
Tough fiscal and monetary policies have steered Sri Lanka past its worst post-independence crisis that saw the economy come to virtual standstill as the nation defaulted on its debts last year. It made a breakthrough this week in reaching debt sustainability, a key step to unlocking more funds that will ramp up foreign reserves and enable it to stock up on essentials such as food and fuel.