Sri Lanka's President Supports IMF Bailout Plan

Sri Lankan President Anura Kumara Dissanayake has reversed his pre-election stance by backing the continuation of the International Monetary Fund (IMF) bailout program, emphasizing economic stability. In his inaugural address, he confirmed plans to finalize a staff-level agreement with the IMF by November 23, which would facilitate the release of the next $330 million tranche from the $3 billion facility. Dissanayake highlighted that the economic recovery is too fragile to renegotiate the bailout terms, which require significant reforms including tax increases and subsidy cuts. His administration aims to secure debt sustainability through restructuring agreements with creditors, a key condition set by the IMF. This decision follows Sri Lanka's economic crisis that began with a $46 billion debt default in 2022, prompting public protests and the resignation of former President Gotabaya Rajapaksa. Dissanayake's government, holding a two-thirds parliamentary majority, is focused on maintaining fiscal discipline and implementing welfare measures to support citizens.