Sri Lanka's Government Continues IMF Bailout Agreement

Sri Lanka's new government, led by President Anura Kumara Dissanayake, has agreed to continue with a controversial IMF bailout plan that includes stringent austerity measures and economic reforms. The International Monetary Fund confirmed the continuation of the four-year loan previously negotiated by the former administration, emphasizing the importance of maintaining policy continuity to ensure economic recovery and stability. IMF team leader Peter Breuer highlighted that the government's commitment is crucial for sustaining reform momentum and protecting gains achieved so far. This agreement follows Sri Lanka's default on its $46 billion external debt in April 2022, which triggered widespread protests and led to the resignation of former President Gotabaya Rajapaksa. The new administration aims to combat corruption and strengthen the fragile economy, which has suffered extensively during the country's recent financial crisis.