However, Sri Lanka must also put the finishing touches on a tentative agreement with bondholders regarding the restructuring of US$ 12.5 billion of debt in order to prepare for a second IMF review after this year.
A quarter of the population has been plunged into poverty and forced to migrate as a result of higher taxes imposed under the IMF program, prolonged prices, and sluggish employment rates brought on by the grinding problems.
As they prepare to run for president, opposition leader Sajith Premadasa and parliamentarian Anura Kumara Dissanayake, who leads the Marxist-leaning Janatha Vimukthi Peramuna ( JVP), are expected to tap into this discontent.
Both Premadasa and Dissanayake have made public statements that they will consider updating the IMF program in order to alleviate Sri Lanka’s burden on loan repayment.
Sri Lanka’s treatment is still very delicate, and attempts to reverse the reforms may lead to a new issue, according to analysts.
According to them, the new government will need to make sure the changes are carried out and approved in order to enhance the business and put it on a positive footing.