COLOMBO:  , IMF key Kristalina Georgieva pledged to support Sri Lanka’s economic treatment, praising the cash-strapped world’s “remarkable return” during website deals with its leader.
The International Monetary Fund managing director promised unspecified help to the South Asian nation during a virtual meeting with President Anura Kumara Dissanayake, his office said Saturday ( Mar 8 ).
” The market has stabilised and is now performing well”, Georgieva said during her over conference with Dissanayake, according to a movie clip shared by the Sri Lankan administration.
” This is so important for people, especially for poor people. We see a remarkable turn from the time when it was near collapse”, she said.
Sri Lanka secured a US$ 2.9 billion IMF bailout in 2023 after declaring its second royal default in April 2022 following an unprecedented international trade deficit and an economic collapse.
Dissanayake, a self-avowed communist, came to power in September promising to renegotiate the IMF payment but has since continued with his counterpart’s painful and unpopular austerity measures.
” Taking actions internally to strengthen the economy in this time of greater international ambiguity is even more important than it would be if we were in a sort of plain vanilla worldwide economic condition”, said Georgieva.
She added that the IMF “would be very happy and eager to back you fully in what has been a successful journey”.
Dissanayake told her that he was keen to reduce the island’s debt and boost private investment.
” To achieve this, we will introduce suitable legislation, including an Investor Protection Act, and ensure a secure and favourable environment for all investors”, his office quoted him as saying.
Last month, the IMF released US$ 334 million, the fourth instalment of the four-year bailout loan, to support the reform programme.
The IMF has said reforms were bearing fruit and the economic recovery has been remarkable, with Sri Lanka’s real GDP recovering” 40 per cent of its loss incurred between 2018 and 2023″.