May 29, 2025 11:31 pm
Full News

IMF Approves Third Review of Sri Lanka’s $2.9bn Bailout

$333 Million Released as Economic Recovery Takes Shape

The International Monetary Fund (IMF) has approved the third review of Sri Lanka’s $2.9 billion bailout, signaling cautious optimism about the country’s economic recovery while warning of persistent vulnerabilities.

On Saturday, the IMF announced the release of $333 million, bringing total disbursements under the program to $1.3 billion. The bailout, first secured in March 2023, has been instrumental in stabilizing Sri Lanka’s economy after its worst financial crisis in over 70 years in 2022.

Debt Restructuring Still Pending

Despite signs of progress, Sri Lanka still faces significant hurdles, including the restructuring of $12.5 billion in bondholder debt and a $10 billion debt rework with bilateral creditors such as Japan, China, and India. The IMF emphasized that completing these restructuring efforts is essential to advancing the program.

Progress and Remaining Challenges

Economic stability has improved since 2022, a year marked by a severe foreign exchange crisis that left Sri Lanka unable to import basic necessities like food, fuel, and medicine. The crisis triggered mass protests and led to the resignation of then-President Gotabaya Rajapaksa.

Al Jazeera’s Minelle Fernandez reported from Colombo that the IMF is satisfied with the government’s pace of reforms, noting that the economy has stabilized significantly. “This cash infusion will help maintain reserves and ensure the supply of basic necessities,” she said.

However, IMF senior mission chief Peter Breuer stressed the importance of adhering to fiscal reforms, including boosting tax revenues and restructuring state-owned enterprises, to achieve the program’s goal of a 2.3% primary budget surplus in 2024.

Inflation and Economic Growth

Inflation, which peaked at 70% during the crisis, is now under control at around 0.7%. The economy, which contracted by 7.3% in 2022 and 2.3% in 2023, is projected to grow by 4.4% this year, according to the World Bank.

Sri Lanka’s President Anura Kumara Dissanayake, who leads a recently elected left-wing coalition, expressed strong support for the IMF program in his first parliamentary address. He pledged to finalize debt restructuring by the end of December and underscored the importance of disciplined economic management.

An interim budget is expected to be presented in December, paving the way for the fourth review of the IMF program.

“Not Out of the Woods Yet”

While signs of recovery are evident, the IMF cautioned that challenges remain. “The authorities have committed to staying within the program’s guardrails,” Breuer said, adding that economic reforms will be critical to sustaining growth and avoiding future crises.

Sri Lanka’s journey from crisis to recovery is progressing, but the path ahead remains fraught with challenges.

Related News
Tawhid hossain’s message for communal harmony to India
Hefazat-e-Islam Drives Changes in UNESCO-Recognized Bengali New Year Procession
Additional $5 Billion Aid: No Response Yet to Dr. Yunus’s Appeal to Development Partners
JD Vance Meets Vatican Officials Amid Migration Policy Disputes
U.N. Aviation Agency Reports Data Breach Involving Thousands of Recruitment Records
Berlin’s Transformation: From Bohemian Hub to Economic Powerhouse
Related Posts
MIT Shuts Down DEI Office Amid National Debate and Trump Administration Pressure
GOP Lawmaker Introduces Bill to Rename D.C. Metro as “Trump Train”
Kamala Harris’s 2028 Nomination Is Hers to Lose — and She’s Losing It
Trump Sees Major Wins in Latin America
SpaceX Starship Setbacks Raise Concerns Over NASA’s 2027 Moon Mission
Lashkar-e-Taiba Claims Role in Bangladesh Uprising, Raising Alarms Over Regional Security
More News

Explosion in Syrian Arms Depot Kills 11 at Military Base

An explosion at an arms depot near Syria’s capital, Damascus, has killed 11 people. The incident occurred on Sunday, according to the Syrian Observatory for Human Rights. The explosion took place in the commercial area of Adra, located 30 kilometers (20 miles) from Damascus. The Syrian Observatory for Human Rights stated that the explosion might […]

Should We Ignore our Responsibility?

Professor Dr. A. K. Abdul MomenFormer Foreign Minister of Bangladesh Ms. Nusrat Faria is a movie star. She has been detained and now in Police custody. There is no case against her nor she ever was involved in politics. Her only crime is “she played the role of Sheikh Hasina in a movie” and she […]

Plane Overturns While Landing in Canada, Injured 19

A passenger plane overturned while landing in Canada. The Delta Airlines flight was carrying 80 passengers. At least 19 people were injured in the accident, with several in critical condition. According to a report by Al Jazeera on Tuesday (February 18), the incident occurred at Toronto Pearson International Airport. The aircraft, carrying 80 passengers, overturned […]

Selling Tap Water as Zamzam: $2.5 Million Earned in 5 Months

Turkish police have arrested a man named Bilal for selling ordinary tap water as the sacred Zamzam water from Mecca. Initial investigations revealed that he had been running this scam for the past five months, earning at least $2.5 million or 9 million liras (equivalent to 300 million Bangladeshi Taka). Further investigations found that he […]

Punjab Schools and Colleges to Reopen Amidst Ongoing Tensions

LAHORE, Pakistan — Following a period of heightened tensions and military confrontations between India and Pakistan, educational institutions in Punjab province are set to reopen on Monday, May 12, 2025. The closures were a direct response to the recent escalation in hostilities, which saw missile and drone strikes exchanged across the border, leading to significant […]

What I witnessed at The White House.

Dastagir Jahangir Yesterday, I went to the White House to cover the news. Ukrainian President Volodymyr Zelenskyy was expected to arrive for a meeting with the most popular American president of this era, Donald Trump. The agenda was to discuss a potential bilateral agreement regarding Ukraine’s mineral resources and explore ways to bring the war […]

Who Is Gen Asim Munir? The Powerful Army Chief Leading Pakistan Amid Escalating India Tensions

In Pakistan’s 77-year history, its military has often wielded more influence than its civilian governments—and today, that power still rests firmly with the country’s army chief, Gen Asim Munir. Though martial law is a thing of the past, Munir is widely regarded as the most powerful man in Pakistan. Since becoming army chief over two […]

India-Pakistan Ceasefire Holds, But Experts Warn of Renewed Hostilities

May 21, 2025 — While India and Pakistan have adhered to the US-brokered ceasefire following their near-war earlier this month, analysts warn that the fragile peace may not last. Indian Prime Minister Narendra Modi has already stated that the ceasefire is merely a *pause, not an end to military operations. His remarks have fueled concerns […]

Turkish TV Series Captivating Global Audiences, Now Targeting the U.S. Market

Turkish television series have made a significant impact internationally, attracting millions of viewers worldwide. Recently, OGM Pictures received recognition at a special Golden Globe event for its contributions to the industry. The popularity and success of Turkish series are on the rise across the globe. Their unique storytelling, emotional depth, and high production quality have […]

Press Freedom Under Attack in Bangladesh: News Outlet Shut Down for Exposing Corruption

Journalism in Bangladesh has taken a severe hit under the interim government led by Nobel laureate Dr. Muhammad Yunus, with freedom of the press seemingly reduced to a hollow concept. The abrupt shutdown of the online news portal Daily Bangladesh has shocked the nation’s media landscape. The outlet was penalized for exposing corruption among key […]