IMF is giving Sri Lanka 2.9 billion dollars to overcome the crisis.

Sri Lanka 2.9 billion dollars to overcome the crisis.

Sri Lanka approached the International Monetary Fund (IMF) to resolve the economic crisis. The two sides had a meeting in the capital Colombo recently. Finally there is a green signal from the IMF for assistance. The agency announced on Thursday that it will provide $2.9 billion bailout to Sri Lanka to rebuild the economy.

Due to the lack of dollars in Djerba Sri Lanka due to the economic crisis, even essential products cannot be imported. There have been months of shortages of food, fuel and medicine, and inflation has soared. Power outages have caused additional suffering. The crisis has deepened as the Sri Lankan government defaulted on its foreign debt of $5,000 billion. In this situation, Sri Lanka declared itself bankrupt.

Sri Lankan politics is also in disarray as a result of the country's shaky economy. The general public believed that the then-ruling Rajapakse family was to blame for the country's economic crisis. People took to the streets to demand that the Rajapakse family be removed from power. President Gotabaya Rajapaksa fled Sri Lanka last July in the face of mass protests.He later announced his departure from Singapore.

The IMF confirmed the bailout in a statement yesterday, 9 days after a meeting with the Sri Lankan government in Colombo.It is now awaiting final approval from the organization's board of directors. According to the statement, Sri Lanka is in the midst of a major crisis.

Meanwhile, in order to receive the bailout funds, Sri Lanka must accept some IMF conditions. This includes the Sri Lankan government entering into a new agreement with donors to change the terms of previous loans.

Furthermore, IMF official Peter Brewer believes that it is critical to stand by Sri Lanka's creditors in order to help the country overcome its economic crisis and repay its debt.He told journalists that all lenders should now work with Sri Lanka in their own best interests. If they do not provide this assurance, the crisis in Sri Lanka will worsen, and the country's ability to repay the debt will be harmed even further.

Meanwhile, Brewer has not stated when Sri Lanka will receive IMF assistance funds. That said, Sri Lanka's needs are "very urgent" and need to be addressed soon.

Sri Lanka asked the IMF for assistance of 300 to 400 million dollars. In contrast, they are getting 290 million dollars. This amount will be given for the next four years.However, Brewer pointed out that the IMF's assistance is insufficient to resolve Sri Lanka's economic crisis. He believes that other donors should also support the country.

Economic analyst and former deputy governor of the country's central bank, WA Bijewardena, said that the Sri Lankan government will have to take several tough steps to ensure the IMF loan. In the meantime, the government is moving towards taking some such steps. Sri Lanka has agreed to raise revenues, end subsidies, maintain a flexible exchange rate and rebuild foreign reserves, the IMF says.

IMF bailout meaning?

Bailout conditionality. The IMF provides financial assistance to countries only if they agree to implement a series of economic policy reforms to revive and maintain a sustainable economic growth rate in the long term.

IMF is giving Sri Lanka 2.9 billion dollars to overcome the crisis.