Sri Lanka’s potential loan deal with the International Monetary Fund it is not expected to be concluded before September, as announced by the country’s new president, Ranil Wickremesinghe.
According to what APE-MPE broadcasts, citing the Associated Press, in his first speech after was elected to the presidency from the parliament, Wickremesinghe stated that although when he was prime minister he intended to conclude an agreement with the IMF at the beginning of August, now the facts have changed due to the riots of the last months and there will be a delay of one month.
Mr Wickremesinghe took power after former President Gotabaya Rajapaksa, under whose days talks with Washington’s international financial institution began in April, was forced out of the country and submitted his resignation from office on July 13 amid widespread civil unrest.
Last Friday the Ministry of Finance announced that talks with the IMF have resumed after the new government took office and described them as successful.
THE Sri Lankaformerly Ceylon, is experiencing the most serious political and economic crisis since its independence in 1948. The situation in the country is not even comparable to the period of the barbaric civil war with the separatist Tamil Tigers, crushed by the Gotabaya-led army Rajapaksa, once a military man, at the time of Defense Minister, in 2009.
The Asian nation has few dollars available for fuel imports, declared a default on its $51 billion foreign debt for the first time in its history, inflation hit 54.6% last month and was expected to climb even higher, while schools, public services and private businesses were closed to conserve fuel.
The crisis is mainly attributed to the new coronavirus pandemic, which crippled the tourism sector and drained the remittances of immigrants abroad. The Rajapaksa-promoted tax cuts blew a huge hole in state revenue, while a ban on chemical fertilizers also hit the primary sector before it was lifted.
About $12 billion of the island’s total foreign debt is held by private creditors.
Source: News Beast
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
