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

Sri Lanka failed its first IMF review and there is no timeline for further aid disbursement
The IMF said Sri Lanka has made progress on reforms but economic recovery is not yet in sight
The IMF wants Sri Lanka to boost revenues through tax administration reforms and removing exemptions
Critics say the IMF should have pushed harder for expenditure cuts by the government
Sri Lanka's debt restructuring progress and ties with China will be key for IMF deal

nikkei.com

Relevant topic timeline:

9/27/2023

IMF Holds Back Sri Lanka Bailout Funds Over Revenue Concerns

The International Monetary Fund did not reach a staff-level agreement with Sri Lanka for its bailout package due to a potential shortfall in government revenue generation, which could delay the release of the second tranche of the loan.

9/27/2023

IMF Cautions Sri Lanka's Economic Recovery Still Faces Hurdles

The International Monetary Fund warns that Sri Lanka's economic recovery is not yet assured, as the country struggles to meet revenue targets and ensure growth despite taming inflation.

10/7/2023

Sri Lanka Faces Mounting Hardships as IMF Bailout Demands Austerity

Sri Lanka is facing a challenging situation as it struggles to meet the demands of the International Monetary Fund (IMF) while also rebuilding its society, with professionals considering emigration due to the impact of austerity measures and tax reforms on their incomes. The IMF is urging the country to implement tax policies and reforms and strengthen tax administration to bridge the gap between revenue and expenditure. Failure to comply with the IMF program could result in social unrest and a loss of stability.

10/12/2023

Sri Lanka Navigates Debt Crisis with IMF Bailout and Creditor Restructuring Amid Concerns over China's Growing Influence

Sri Lanka has reached an agreement with the Export-Import Bank of China to cover a substantial amount of its outstanding debt, providing the necessary fiscal space for the country to implement its reform agenda and secure the release of the second tranche of an IMF loan.

10/12/2023

Sri Lanka Secures Debt Relief Deal with China to Advance IMF Bailout

Sri Lanka has reached an agreement with the Export-Import Bank of China to cover $4.2 billion of outstanding debt, which will help the country secure a second tranche from the International Monetary Fund (IMF) and move towards economic recovery.

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Posted 9/27/2023, 10:13:00 AM

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

Sri Lanka failed its first IMF review and there is no timeline for further aid disbursement
The IMF said Sri Lanka has made progress on reforms but economic recovery is not yet in sight
The IMF wants Sri Lanka to boost revenues through tax administration reforms and removing exemptions
Critics say the IMF should have pushed harder for expenditure cuts by the government
Sri Lanka's debt restructuring progress and ties with China will be key for IMF deal

nikkei.com

Relevant topic timeline:

9/27/2023

IMF Holds Back Sri Lanka Bailout Funds Over Revenue Concerns

9/27/2023

IMF Cautions Sri Lanka's Economic Recovery Still Faces Hurdles

The International Monetary Fund warns that Sri Lanka's economic recovery is not yet assured, as the country struggles to meet revenue targets and ensure growth despite taming inflation.

10/7/2023

Sri Lanka Faces Mounting Hardships as IMF Bailout Demands Austerity

10/12/2023

Sri Lanka Navigates Debt Crisis with IMF Bailout and Creditor Restructuring Amid Concerns over China's Growing Influence

10/12/2023

Sri Lanka Secures Debt Relief Deal with China to Advance IMF Bailout