Sri Lanka’s new President, Anura Kumara Dissanayake, plans to begin IMF negotiations immediately. He aims to advance the country’s $2.9 billion bailout program. Dissanayake, elected by millions of Sri Lankans, promises to slash taxes, fight corruption, and lower the cost of living.
His first priority is to revise the revenue goals set by the IMF program. He plans to reduce high-income taxes and free up funds for welfare. Dissanayake emphasizes the need to support millions of Sri Lankans hardest hit by the financial crisis.
In a televised address, Dissanayake highlighted his commitment to debt restructuring. He stated that the government is negotiating with creditors to expedite the $25 billion debt rework process. His goal is to secure necessary debt relief as quickly as possible.
The IMF expressed willingness to collaborate with Dissanayake. They plan to discuss the timing of their third review of Sri Lanka’s program as soon as practicable.
Dissanayake dissolved parliament on Tuesday. He hopes to strengthen his position in the 225-member house through the upcoming general election on November 14. His coalition, currently holding just three seats, seeks to gain more influence.
Sri Lanka’s economy has been in a deep financial crisis since a severe shortfall of dollars two years ago. Inflation soared to 70% in September 2022, worsening the economic situation. The country was eventually forced to default on its foreign debt.
Dissanayake’s strategy focuses on revising IMF conditions, securing debt relief, and prioritizing welfare spending. He aims to steer Sri Lanka towards economic recovery and stability. The upcoming election will play a crucial role in his ability to implement these changes effectively.
Sri Lanka’s New President Charts Course for Recovery with IMF and Debt Relief FocusSri Lanka’s future depends on successful negotiations and swift economic reforms. The government remains committed to securing a brighter future for its citizens.