Desperate, Sri Lanka badly needs this aid from the IMF, amounting to 3 billion dollars.
“The negotiations with the International Monetary Fund have successfully reached their final stage.” Almost two months after the forced exile of President Gotabaya Rajapaksa on July 9, his successor Ranil Wickremesinghe announced the good news on Tuesday in Parliament. Discussions have been taking place for several weeks between the various creditors of the island state located in southern India. In April, Sri Lanka found itself unable to repay its external debt of 51 billion dollars, mainly contracted with China, India and Japan. Another alarming indicator, inflation reached 64.3% over one year in August.
“The IMF expected proof of its financial probity from the government”, observes Torek Farhadi, former adviser to the multilateral institution and economist specializing in the region. To satisfy the demands of the international finance firefighter, President Ranil Wickremesinghe has decided to raise VAT from 12 to 15% for all…
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