US diplomat discusses Sri Lanka's IMF program in Colombo
Senior US diplomat Richard Verma on Friday met Sri Lankan President Ranil Wickremesinghe and Foreign Minister Ali Sabry in Colombo, and discussed Sri Lanka's economic recovery and progress on its IMF program, the US State Department said.
Why it is important
The South Asian island nation finalised a $2.9 billion bailout from the International Monetary Fund in March 2023, which helped temper skyrocketing inflation, improved state revenue and boosted foreign exchange reserves.
The country defaulted on its overseas debt in May 2022 after a severe shortage of foreign exchange reserves triggered the worst financial crisis since independence from Britain in 1948.
Sri Lanka has since made progress on about $11 billion of bilateral debt restructuring and hopes to have agreements in place with all key creditors, including bondholders, by May at the latest, Sabry told Reuters earlier this month.
Key quotes
The State Department official and the Sri Lankan leaders "discussed progress on Sri Lanka's IMF program, including economic and governance reforms aimed at putting Sri Lanka on the path to sustainable economic growth," the department said in a statement.
By the numbers
Sri Lanka's economy is estimated by the World Bank to have contracted by 3.8 per cent last year but is expected to grow by 1.7 per cent in 2024. Sri Lanka's central bank has projected a more optimistic growth of 3 per cent for this year.