After a staff team visited the island nation, The International Monetary Fund announced on Friday ( Apr 11 ) that discussions with Sri Lanka will continue to lead to a conclusion on the fourth review of its US$ 2.9 billion program.
Sri Lanka, which experienced a stringent fiscal crisis in March 2023 as a result of a document dollar shortage, has since experienced a strong healing.
The IMF said in a speech that this treatment may be impacted by external surprises that are making the Sri Lankan business uncertain.
The US has imposed a 44 % tax on Sri Lankan imports, which will have an effect on about US$ 3 billion of imports, most of which will be clothing. Sri Lanka will still be required to pay an additional 10 % on the majority of US imports despite the tariff’s three-month suspension.
More time is needed to determine the impact of the global impact and how its effects on Sri Lanka may be addressed within the framework of its IMF-supported program, the IMF statement continued.
The IMF also mentioned the need to raise power prices, evade tax exemptions, and repair foreign exchange reserves as Sri Lanka’s top priority issues.