IMF pledges cooperation with Sri Lanka's new president on $3 billion loan program
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The International Monetary Fund (IMF) has expressed its commitment to working with Sri Lanka's newly elected president, Anura Kumara Dissanayake, on the country’s ongoing $3 billion bailout plan.
Following Dissanayake’s swearing-in on Monday, the IMF announced plans to coordinate with his administration for the third review of the loan package as soon as possible.
"We look forward to collaborating with President Dissanayake and his team to build on the progress made towards Sri Lanka's economic recovery since the 2022 crisis," the IMF said in a statement.
Dissanayake campaigned on a platform of renegotiating the IMF loan, which includes controversial tax hikes and spending cuts.
These measures, introduced under former President Ranil Wickremesinghe, aimed to stabilize the country during its economic collapse but fueled public dissatisfaction due to the rising cost of living.
While Dissanayake's push to revise the loan terms aligns with voter concerns, analysts warn that delays in meeting IMF fiscal targets could postpone further financial support.
Investors are watching closely, with hopes that the new administration will maintain the core elements of the deal while seeking adjustments. A member of Dissanayake's coalition party indicated that the government intends to stay within the program but aims for modifications.
The IMF also noted that a recent agreement with bondholders marked significant progress in restructuring Sri Lanka's debt, although it remains subject to confirmation from the country’s Official Creditors Committee.