Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent in Beirut: The Syrian delegation's visit to Beirut, which was scheduled for Thursday, has been postponed until next week
Palestinian Ministry of Health in Gaza: The total number of Palestinians killed due to famine and malnutrition has risen to 313, including 119 children
Ministry of Health in the Gaza Strip: 10 people, including two children, have died of starvation in the past 24 hours
Al Mayadeen's correspondent in South Lebanon: US envoy Tom Barrack cancels his visit to Tyre and al-Khiam amid popular protests
Al Mayadeen's correspondent in Lebanon: Israeli occupation forces carried out an explosion in the southern border town of Kfar Kila
Russian Ministry of Defense: 37 Ukrainian drones destroyed in 4 hours over regions of Russia and the Black Sea.
Sheikh Qassem: Our supporters make up more than half of Lebanon's population, and all of these people are united under the banner of protecting Lebanon, its Resistance, its people, and its integrity.
Sheikh Qassem: There will be no phased handing in of our arms. [The Israelis] must first enact the agreement before we start talking about a defensive strategy.
Sheikh Qassem: Be brave in the face of foreign pressures, and we will be by your side in this stance.
Sheikh Qassem: Stripping us of our arms is like stripping us of our very soul, and this will prompt us to show them our might.

Hard times to follow IMF bailout, warns Sri Lanka president

  • By Al Mayadeen English
  • Source: Agencies
  • 24 Mar 2023 20:11
4 Min Read

The President of Sri Lanka warns that his country must brace for economic hardship days after the IMF agreed to bailout the country under numerous strict conditions.

  • x
  • A huge poster with a photograph of President Ranil Wickremesinghe is displayed on the facade of a building in Colombo, Sri Lanka, March 22, 2023 (AP)
    A huge poster with a photograph of President Ranil Wickremesinghe is displayed on the facade of a building in Colombo, Sri Lanka, March 22, 2023 (AP)

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.

Related News

Lebanon passes banking restructuring law to secure funds from the IMF

World Bank: Global growth to slow sharply, worst since 2008

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.

  • International Monetary Fund
  • Ranil Wickremesinghe
  • Sri Lanka
  • China
  • IMF loan

Most Read

Almost instantly after the Helsinki Accords were signed, organisations sprouted to document purported violations, whose findings were fed to overseas embassies for international amplification. (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

How ‘Human Rights’ became a Western weapon

  • Opinion
  • 23 Aug 2025
Israeli soldiers stand on the top of armoured vehicles parked on an area near the Israeli-Gaza border, as seen from southern Israel, Wednesday, Aug. 20, 2025 (AP)

Palestinian fighters target Israeli soldiers, vehicles in Gaza

  • Politics
  • 21 Aug 2025
Launch of a ballistic missile from Yemen toward the occupied Palestinian territories. (YAF military media)

Yemeni Forces announce firing hypersonic missile at Al-Lydd Airport

  • Politics
  • 22 Aug 2025
Tom Barrack's imperial tantrum in Beirut: When entitlement speaks (Photo by Mahdi Rtail)

Tom Barrack's imperial tantrum in Beirut: When entitlement speaks

  • Politics
  • 26 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Palestinians pray over the bodies of people who were killed in an Israeli military strike, during their funeral outside Shifa Hospital, in Gaza City, Friday, August 22, 2025 (AP)
Politics

'Israel’s' 'double-tap' strike on Gaza hospital must be probed: UN

Elon Musk flashes his t-shirt that reads DOGE to the media as he walks on the South Lawn of the White House, in Washington, Sunday, March 9, 2025 (AP)
Technology

Whistleblower warns DOGE mishandled social security data of millions

Secretary of State Marco Rubio arrives for a joint press conference with President Donald Trump and Russia's President Vladimir Putin at Joint Base Elmendorf-Richardson, Alaska, Friday, Aug. 15, 2025 (AP)
Politics

House Democrats urge Rubio to admit injured Gaza kids after visa halt

The Microsoft Sign at the Redmond headquarters sprayed in red during a protest against 'Israel' using the company's cloud services, Redmond, Washington DC, United States, August 21, 2025 (Social Media)
Politics

Current, ex-Microsoft staff arrested in sit-in against Israeli ties

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS