The International Monetary Fund (IMF) has approved a $3 billion (£2.4 billion) bailout for Sri Lanka, which is facing its worst economic crisis since independence. According to Foreign Minister Ali Sabry, the administration plans to earn finances through reforming state-owned firms and privatizing the national airline. Analysts, however, caution that Sri Lanka faces a difficult path ahead. The epidemic, rising oil prices, populist tax cuts, and more than 50% inflation have all had a significant impact on the country’s economy. This has resulted in a lack of medications, gasoline, and other necessities, prompting widespread demonstrations in 2022.
Sri Lanka has a lengthy road to consolidating its government financial sheet, sustaining economic development, and achieving external stability, and is anticipated to decline again in 2023 before resuming growth in 2024.