Sri Lanka’s IMF Support Programme

COLOMBO (Reuters) – Sri Lanka plans to move ahead with the third review of its nearly $3 billion programme of support from the International Monetary Fund. The new government, led by President Anura Kumara Dissanayake, aims to navigate the island nation out of its worst financial crisis in decades.

Government Plans

Dissanayake, elected last week, has committed to reducing taxes as part of the IMF programme. In a recent meeting with an IMF delegation in Colombo, he stated that his administration agrees with the broad parameters of the programme but aims to review the value-added tax and direct income tax to alleviate the public’s financial burden.

Financial Objectives

Completing the third review of the IMF programme is crucial for Sri Lanka to access an estimated $337 million in funds, which are essential for finalizing a $12.5 billion debt restructuring with bondholders.