In a statement made by the Sri Lankan Presidency, it was claimed that the IMF accepted a $2.9 billion bailout package for the country under the Extended Fund Facility (EFF).

In the statement made by the IMF, it was noted that the board of directors approved the 48-month program within the scope of the EFF.

The purpose of the program is to “build Sri Lanka’s macroeconomic stability and debt sustainability, reduce the impact of the economy on the poor, maintain financial sector stability, and strengthen governance and growth potential,” the statement said. .

IMF Managing Director Kristalina Georgieva said it is important to implement the EFF-backed program quickly and on time for Sri Lanka to overcome this crisis.

SITUATION IN SRI LANKA

In Sri Lanka, which is struggling with the economic crisis, President Gotabaya Rajapaksa, with his wife and two bodyguards, traveled to the Maldives on July 13, 2022, and to Singapore the next day, after protests escalated over the financial situation and the fuel shortage.

Rajapaksa sent his resignation letter via email on July 14, 2022. Subsequently, on July 20, 2022, in a vote held in the Sri Lankan Assembly, Acting President and Prime Minister Ranil Wickremesinghe was elected as the new head of State of the country.

Sri Lanka’s total external debt exceeded $51 billion, with nearly $7 billion of debt due 2021 in default.

Facing the most severe economic crisis in its history, Sri Lanka reached a preliminary loan agreement of $2.9 billion as a result of negotiations with the IMF. (AA)