IMF approves $3B bailout for Sri Lanka.

The executive board of the International Monetary Fund (IMF) has approved a $3 billion bailout for Sri Lanka. The country’s presidency announced that the program will allow access to up to $7 billion in overall funding, with an initial disbursement of about $333 million. The decision is expected to attract financial support from other partners and assist Sri Lanka in recovering from its worst financial crisis in over seven decades. However, IMF Managing Director Kristalina Georgieva has emphasized the need for Sri Lanka to implement various reforms, particularly in the areas of tax administration, public financial and expenditure management, and energy pricing. President Ranil Wickremesinghe’s office has stated that the IMF program will improve the country’s standing in international capital markets, making it more attractive to investors and tourists. Sri Lanka aims to announce a debt-restructuring strategy in April, and commence talks with commercial creditors, ahead of an IMF review of the bailout package in six months.