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Sri Lanka reaches preliminary deal with IMF for $2.9 billion loan – like this TV

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The World Bank said, on Thursday, that Sri Lanka has reached a preliminary agreement with the International Monetary Fund to obtain a loan of about $ 2.9 billion, at a time when the country is seeking a way out of the worst economic crisis it has witnessed in decades.

According to international media, the agreement, which was first reported by Reuters on Wednesday, is subject to approval by the IMF’s management and its executive board, and is contingent on the Sri Lankan authorities’ follow-up on previously agreed measures.

“The staff-level agreement is only the beginning of a long road for Sri Lanka,” Peter Brewer, a senior IMF official, told reporters in the commercial capital Colombo.

The IMF requires receiving financing guarantees from Sri Lanka’s official creditors, along with ensuring that efforts are made to reach a cooperative agreement with private creditors.

The IMF program, which extends over a period of 48 months, aims to increase government revenues to support fiscal consolidation, introduce new prices for fuel and electricity, increase social spending, enhance central bank independence, and rebuild depleted foreign reserves.

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“Starting with one of the lowest revenue levels in the world, the program will implement significant tax reforms. These reforms include making personal income tax more progressive and expanding the tax base for corporate income tax and value added tax.

“The program aims to achieve a primary surplus of 2.3 percent of GDP by 2024,” she added.

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