The Ministry of Finance announced in a statement that “the Sri Lankan authorities confirm the approval of the initial agreement announced on September 19.”
In 2022, the island witnessed the worst economic and financial crisis in its history, which led to it defaulting on its foreign debt amounting to $46 billion due to a shortage of hard currencies to cover its imports such as food, fuel, and medicines.
I got it last year International Monetary Fund On a $2.9 billion rescue plan, conditional on strict austerity measures and the restructuring of its debt.
Two days before the presidential elections on September 21, former President Ranil Wickremesinghe announced an agreement with creditors and the China Development Bank, stipulating the write-off of 27 percent of the debts owed to private creditors and 11 percent of the interest accruing on them. Sri Lanka Since its default.
The new president, Anura Kumara Dissanayaka, announced his intention to “renegotiate” some provisions of the agreement with the International Monetary Fund, in particular to reduce taxes and duties on food products and medicines due to their impact on the population.
Finance Minister Vijita Herat said that a team from the International Monetary Fund will arrive on the island on Wednesday to meet with the new government, noting that negotiations with the international financial institution will begin later this month in US.
