COLOMBO: In a significant political shift, Sri Lankan President Anura Kumara Dissanayake has expressed full support for the ongoing International Monetary Fund (IMF) bailout package. His endorsement comes despite earlier rhetoric during his presidential campaign, where he had vowed to renegotiate the terms of the loan to ease the tough conditions imposed by the global financial institution. Dissanayake’s decision signals a continued reliance on international financial aid as Sri Lanka navigates its post-crisis economic recovery.
Dissanayake, who assumed office after his National People’s Power (NPP) coalition secured a landslide victory in the 2024 general election, addressed the nation’s newly convened parliament. He emphasized the need to honor his pre-election promises, which included a firm commitment to uphold the rule of law and address past governmental failings. His speech also underscored his administration’s resolve to continue the IMF program, a critical lifeline for the country following the devastating economic crisis of 2022.
In his inaugural address, the president highlighted the importance of prioritizing social welfare while simultaneously adhering to the tough economic reforms demanded by the IMF. The IMF bailout, initially approved under the previous administration of Ranil Wickremesinghe, amounts to a $2.9 billion package aimed at stabilizing Sri Lanka’s economy, which has suffered from severe fiscal imbalances, rising debt, and inflation.
Dissanayake’s administration is now facing the challenge of balancing the necessary austerity measures with public welfare, ensuring that economic recovery benefits all citizens. In a recent meeting with IMF officials, the president reaffirmed his commitment to rebuilding trust in governance and improving transparency, especially in the management of public resources. Additionally, discussions are ongoing regarding Sri Lanka’s broader debt restructuring plan, with significant input from major creditors like Japan, China, and India.
Looking ahead, President Dissanayake’s government is focused on fostering economic stability, targeting a projected growth of 4.4% in 2024. However, the nation remains in a delicate position, balancing the demands of international creditors with the need to protect its vulnerable population from the fallout of austerity measures.
Web Team, C6N
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