Sri Lankan President Ranil Wickremesinghe warned Wednesday that further economic suffering was due for the crisis-stricken nation, with Colombo needing to implement more austerity measures in order to help the country deal with the ruined finances after the government reaches a bailout deal with the IMF.

The International Monetary Fund approved its long-delayed rescue package on Monday after China offered debt relief assurances.

Wickremesinghe hailed the deal during a speech before parliament, saying it was a "milestone" in Sri Lanka's recovery from the unprecedented economic crisis that hit it last year.

Furthermore, the leader told lawmakers that the bailout was only the first step in more difficult structural reforms.

"The IMF loan is not an end in itself, this is the beginning of a long and more difficult journey," he said. "We have to traverse it with care and courage. The only objective is to rebuild the economy."

Sri Lanka defaulted on its $46 billion foreign debt in April 2022 and was negotiating a bailout deal with the IMF to repair its shattered finances. The country witnessed months of lack of food, fuel, and medicine, extended power cuts, and inflation - which in turn has caused civil unrest and public outrage.

Months of protests during the height of the crisis pushed then-President Gotabaya Rajapaksa to depart the country and resign in July 2022 following accusations of economic mismanagement and corruption.

His successor, Wickremesinghe, has negotiated with international creditors and imposed tax hikes "to smooth passage of the IMF bailout."

He also sought to bolster the country's treasury through sharp tax hikes and ending generous consumer subsidies on fuel and electricity.

He said Wednesday that more taxes were on the cards to meet the IMF's demand that Sri Lanka halve its spending on foreign debt servicing from the 9% of GDP recorded last year.

Other IMF demands include requiring Colombo to set up tough anti-corruption laws, as well as privatize state-owned companies, including SriLankan Airlines.

According to Wickremesinghe, the government will assume the external debts of key public companies to make them more attractive to investors.

Trade unions have been highly vocal about their opposition to the austerity program, with strikes taking place crippling the health and transport sectors throughout the last weeks amid warnings that further industrial action is to come.

The International Monetary Fund (IMF) approved a $2.9 billion loan to Sri Lanka under a four-year program on Monday.

China's approval earlier this month to restructure its loans to Sri Lanka has paved the way for the funds' $2.9 billion bailout approval, as Beijing is considered one of the largest creditors of the struggling country.

The President's office stated earlier Monday that he was seeking to restructure the country's debts over a 10-year period.

The country must agree on joint terms for the debt restructuring plan no later than June when the IMF is expected to study the bailout program.

"Sri Lanka will not be able to draw down the second tranche unless a debt restructuring plan is agreed with all creditors," said an official informed on the country's negotiations with the fund.

The country is also counting on the release of billions of dollars in foreign aid - that were frozen since Colombo's debt default last year - after the IMF deal is finalized.