IMF Holds Back Sri Lanka Bailout Funds Over Revenue Concerns

IMF did not reach agreement with Sri Lanka in first bailout review due to potential revenue shortfall
$330 million second tranche will only be released after IMF staff-level agreement is reached
Sri Lanka has made progress with reforms, economy showing signs of stabilization
Full recovery not assured yet, growth momentum remains subdued
Sri Lanka struggled to improve revenue, likely needing more measures in upcoming budget

reuters.com

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9/27/2023

Sri Lanka Fails IMF Review, Future Aid in Doubt as Reforms and Revenue Issues Persist

Sri Lanka suffered a setback after failing to reach an agreement with the International Monetary Fund (IMF) on its next bailout tranche, as the IMF stated that a full economic recovery is not yet in sight and urged the government to boost revenues through tax reforms and improved governance.