Lanka Seeking IMF Bailout
World Economy

Lanka Seeking IMF Bailout

Sri Lanka has made a formal request for an International Monetary Fund bailout package to aid its struggling economy after a sharp slowdown in growth and with its budget deficit widening, officials said on Saturday.
The IMF confirmed the island nation had asked for assistance, but did not give details on the value of a potential program or say whether it would grant the request, AFP reported.
“The IMF has received a request for a program with Sri Lanka,” the fund said in a statement from its headquarters in Washington DC.
Sri Lanka enjoyed a blistering economic growth rate averaging more than 8% for two years after a prolonged civil war ended in 2009. But the pace of expansion has since slowed, falling to 4.8% in the third quarter of 2015, according to official data.
Prime Minister Ranil Wickremesinghe told parliament last month that he was keen on negotiating an IMF bailout to deal with the fallout of a global economic downturn on his country of 21 million people.
The IMF, which sent a mission this week to review Sri Lanka’s economy, said Saturday it had warned the authorities they should make a “stronger effort” to immediately reduce the budget deficit.
“The mission has advised the government to urgently make a stronger effort to narrow the fiscal deficit and put the public finances on a sustainable path,” the IMF said in a statement.
Sri Lanka’s government sought an IMF bailout immediately after taking power in January last year but the fund turned down the request, saying the country’s reserves were at a comfortable level.
It received $2.6 billion from the IMF in 2009 to boost its financial reserves, which had dropped below $1 billion at the height of fighting between Tamil Tiger rebels and government forces.
The IMF also said on Saturday it had warned of rising debt levels saying the Sri Lankan government had been unable to keep to its budget deficit target last year and that it was unlikely to meet it in 2016.
“These imbalances are also set against an increasingly less benign external environment,” the statement said.
“Set against such risks, the mission emphasized the urgent need for Sri Lanka to bolster its economic defenses.”


Short URL : http://goo.gl/wAK7wf
  1. http://goo.gl/rRKZ9w
  • http://goo.gl/KkIxjJ
  • http://goo.gl/Uh9FuK
  • http://goo.gl/vo2BYy
  • http://goo.gl/L5SlBu

You can also read ...

Qatar Capable of Overcoming Siege Challenges
Qatar affirmed its ability to overcome the challenges of the...
Apple Inc won guarantees from the Trump administration that its lucrative iPhones would ship from China  without being subject to tariffs.
Big companies in the United States from Amazon.com Inc to...
Japan Inflation Inches Higher
Japan’s inflation picked up slightly in June, largely because...
Today, income inequality in the US is greatest among Asians. Asians displaced blacks as the most economically divided racial or ethnic group in the US.
The rich are getting richer and the poor are getting poorer in...
Growing Inflation Looms Large Over India’s Economy
From rising crude oil prices to a poor start to rice-planting...
State-Actors Likely Behind Singapore Cyberattack
State-actors were likely behind Singapore’s biggest ever...
S&P Affirms Russia’s Stable Outlook
Standard & Poor’s said in a statement on Friday that it...
Argentina Making Fiscal Progress
Argentina is “unequivocally” making progress on its goals to...