Current:Home > StocksSri Lanka will get the second tranche of a much-need bailout package from the IMF-InfoLens
Sri Lanka will get the second tranche of a much-need bailout package from the IMF
View Date:2024-12-23 11:48:46
COLOMBO, Sri Lanka (AP) — The International Monetary Fund executive board approved the release of the second tranche of a $2.9 billion dollar bailout package to help Sri Lanka recover from the worst economic crisis in its history.
In a statement, the fund said the decision Tuesday to release $337 million came after Sri Lanka had made “commendable progress” toward debt sustainability, raising revenue, rebuilding its reserves, reducing inflation and safeguarding financial stability.
It said a strong commitment to improving governance and protecting the poor and vulnerable remains critical.
In September, the IMF delayed the release of the second tranche of the four-year package, saying Sri Lanka’s economy was recovering but the country needed to improve its tax administration, eliminate exemptions and crack down on tax evasion.
Sri Lanka plunged into its worst economic crisis last year, suffering severe shortages and drawing strident protests that led to the ouster of then-President Gotabaya Rajapaksa. It declared bankruptcy in April 2022 with more than $83 billion in debt — more than half of it to foreign creditors.
The approval follows Sri Lanka’s agreement with an Official Creditor Committee on debt restructuring, covering about $5.9 billion of outstanding public debt. Japan and India are members of the 17-strong creditor committee. Sri Lanka had previously reached a debt restructuring agreement with China’s EXIM Bank covering $ 4.2 billion in outstanding debt.
Sri Lanka is hoping to restructure $17 billion of its tens of billions of outstanding debt.
Over the past year, Sri Lanka’s severe shortages of essentials like food, fuel and medicine have largely abated, and authorities have restored power supplies.
But public dissatisfaction has grown over the government’s efforts to increase revenues by raising electricity bills and imposing heavy new income taxes on professionals and businesses.
This week the government increased the rate of the Valued Added Tax and extended it to cover many essential items such as cooking gas, fuel, medicines etc. under the tax.
veryGood! (8228)
Related
- Jax Taylor Breaks Silence on Brittany Cartwright Dating His Friend Amid Their Divorce
- Don't Miss $10.40 Dresses and More Early Amazon Prime Day 2024 Fashion Deals Up to 69% Off
- Parent company of Saks Fifth Avenue to buy rival Neiman Marcus for $2.65 billion,
- New state climatologist for Louisiana warns of a ‘very active’ hurricane season
- Democratic state leaders prepare for a tougher time countering Trump in his second term
- Dress appropriately and you can get a free Krispy Kreme doughnut on July 4th: Here's how
- Don't Miss $10.40 Dresses and More Early Amazon Prime Day 2024 Fashion Deals Up to 69% Off
- 2024 MLB Home Run Derby: Rumors, schedule, and participants
- A Pipeline Runs Through It
- 'Space Cadet' star Emma Roberts on her fear of flying and her next 'thriller' movie
Ranking
- Jennifer Garner and Boyfriend John Miller Are All Smiles In Rare Public Outing
- Fight over retail theft is testing California Democrats’ drive to avoid mass incarceration policies
- Now-banned NBA player Jontay Porter will be charged in betting case, court papers indicate
- Why Takeru Kobayashi isn't at the Nathan's Hot Dog Eating Contest
- 'Treacherous conditions' in NYC: Firefighters battling record number of brush fires
- Are tanning beds safe? What dermatologists want you to know
- Chet Hanks clarifies meaning of 'White Boy Summer' after release of hate speech report
- Blue Bell brings back another discontinued ice cream flavor after contentious fan vote
Recommendation
-
Richard Allen found guilty in the murders of two teens in Delphi, Indiana. What now?
-
Q&A: How a Land Purchase Inspired by an Unfulfilled Promise Aims to Make People of Color Feel Welcome in the Wilderness
-
130 degrees: California's Death Valley may soon break world heat record
-
New state climatologist for Louisiana warns of a ‘very active’ hurricane season
-
Jana Duggar Reveals She's Adjusting to City Life Amid Move Away From Farm
-
Propulsion engineer is charged with obstructing probe of deadly 2017 US military plane crash
-
Mega Millions winning numbers for July 2 drawing: Jackpot grows to $162 million
-
'American Idol' judge Luke Bryan doesn't know if he or Lionel Richie will return