Sri Lanka Stabilizing After Bailout
World Economy

Sri Lanka Stabilizing After Bailout

Sri Lanka’s economy has begun to stabilize after securing a $1.5 billion bailout earlier this year, but the island needs to build its dwindling foreign reserves, the IMF said Saturday. The Washington-based International Monetary Fund said it had just concluded its first review of Sri Lanka’s economy after announcing the bailout in June and labeled its performance “broadly satisfactory”, World Bulletin reported. “Sri Lanka’s performance under the fund-supported program has been broadly satisfactory despite challenging circumstances,” IMF’s Acting Chair and Deputy Managing Director, Tao Zhang, said in a statement. He said the IMF on Friday released $162.6 million to Sri Lanka as the second tranche of its bailout that will be disbursed over three years. Sri Lanka’s macroeconomic and financial conditions had begun to stabilize, inflation has trended down, and the balance of payments had improved, he said. However, he cautioned Sri Lanka’s international reserves remained below comfortable levels and also warned of credit expansion that could fuel further inflation. Official figures show the current reserves of Sri Lanka at $6.06 billion, sufficient to finance imports for nearly four months.


Short URL : https://goo.gl/S6qkbG
  1. https://goo.gl/l8X0Ul
  • https://goo.gl/w0tu01
  • https://goo.gl/LXS1W3
  • https://goo.gl/ltSHBI
  • https://goo.gl/inuUZl

You can also read ...

Switzerland has the smallest ratio with 7.2% of GDP.
The shadow economy in Jordan accounted for 17.38% of the GDP...
The Bank of Italy revised its growth estimates down to 1.3% for 2018, and to 1% for 2019.
Italy's already weak growth forecasts were revised downwards...
Saudi Arabia Facing Uphill Battles
Saudi Crown Prince Mohammed bin Salman’s Vision 2030 scheme...
The popular Tesla Model S is due to sell by the end of this month in China, at which point the price will go up about $20,900.
More than a week has passed since the US and China fired the...
Airbus, AirAsia Discussing $23 Billion Deal
The Malaysian airline, already the second-biggest customer for...
German Cabinet Warned of Economic Risks
The chief of Germany’s central bank, Jens Weidmann, warned the...
Pakistan Raises Key Interest Rate
Pakistan’s central bank on Saturday raised interest rates by...
The bankruptcy of investment bank Lehman Brothers on September...

Add new comment

Read our comment policy before posting your viewpoints