Current:Home > NewsSri Lanka will get the second tranche of a much-need bailout package from the IMF-LoTradeCoin
Sri Lanka will get the second tranche of a much-need bailout package from the IMF
View Date:2024-12-23 21:14:35
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! (2)
Related
- Where you retire could affect your tax bill. Here's how.
- Biden urges Congress to pass Ukraine funding now: This cannot wait
- Jill Biden and military kids sort toys the White House donated to the Marine Corps Reserve program
- 'The Voice' contestant Tom Nitti reveals 'gut-wrenching' reason for mid-season departure
- Tennessee fugitive accused of killing a man and lying about a bear chase is caught in South Carolina
- 'Washington Post' journalists stage daylong strike under threat of job cuts
- Adele Hilariously Reveals Why She's Thriving as Classroom Mom
- Air quality had gotten better in parts of the U.S. — but wildfire smoke is reversing those improvements, researchers say
- 'Wanted' posters plastered around University of Rochester target Jewish faculty members
- Biden urges Congress to pass Ukraine funding now: This cannot wait
Ranking
- Military veteran gets time served for making ricin out of ‘curiosity’
- Get the Holiday Party Started with Anthropologie’s Up to 40% Off Sale on Party Favorites
- Ancient 'ghost galaxy' shrouded in dust detected by NASA: What makes this 'monster' special
- Best Holiday Gifts For Teachers That Will Score an A+
- Unexpected pairing: New documentary tells a heartwarming story between Vietnam enemies
- New GOP-favored Georgia congressional map nears passage as the end looms for redistricting session
- Wyoming may auction off huge piece of pristine land inside Grand Teton
- Former Peruvian President Alberto Fujimori is freed from prison on humanitarian grounds
Recommendation
-
Georgia lawmaker proposes new gun safety policies after school shooting
-
Former Jacksonville Jaguars employee charged with stealing $22 million from team
-
Strikes on Gaza’s southern edge sow fear in one of the last areas to which people can flee
-
A fibrous path 'twixt heart and brain may make you swoon
-
2025 NFL Draft order: Updated first round picks after Week 10 games
-
Seattle Seahawks coach Pete Carroll responds to Jamal Adams mocking reporter's wife
-
An appreciation: How Norman Lear changed television — and with it American life — in the 1970s
-
Tearful Adele Proves Partner Rich Paul Is Her One and Only