COLOMBO, Oct 3 - Sri Lanka is proceeding with the third review of its nearly $3 billion support program from the International Monetary Fund (IMF), following the election of new president Anura Kumara Dissanayake. This decision comes as the country aims to recover from its most severe financial crisis in decades.
President Dissanayake, who took office last week, has committed to lowering taxes as part of the IMF program. During discussions with an IMF delegation in Colombo, he affirmed his administration's alignment with the broad parameters of the program but indicated a willingness to reassess value-added tax and direct income tax to alleviate the public's financial burden.
Completing the third review is crucial for Sri Lanka to secure approximately $337 million in funding and to finalize a $12.5 billion debt restructuring deal with bondholders.
Source: Reuters, October 3, 2024