Sri Lanka's President Reverses Stance, Supports IMF Bailout

President Anura Kumara Dissanayake commits to the $2.9 billion IMF programme, citing fragile economic recovery and the need for stability.

• President Dissanayake abandons his election pledge to renegotiate the IMF bailout, stating the economy cannot withstand further shocks.
• The IMF programme includes tax hikes, subsidy cuts, and restructuring of over 50 state-owned enterprises as conditions for funding.
• Sri Lanka expects a staff-level agreement on the third review of the bailout by Friday, potentially unlocking $330 million in funds.
• The government is working to finalize a $12.5 billion debt restructuring with bondholders and bilateral creditors, including China, Japan, and India.
• The 2022 economic crisis caused a 7.8% contraction in Sri Lanka's economy, with recovery efforts projected to yield 4.4% growth in 2024.

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