A severe warning from the IMF
The International Monetary Fund has warned that this year’s economic growth rate in Sri Lanka will be as high as negative 8.8%.
The representatives of the monetary fund have given this warning during the pre-understanding discussions of providing a loan package of US$ 2.9 billion to Sri Lanka. It has been further emphasized that the government needs to apply economic and stable political measures to deal with this situation.
Yesterday (1st) an agreement was reached for the initial understanding of providing US$b2.9 billion to Sri Lanka in instalments over 04 years. There is no guarantee that the amount that has been agreed to be provided will be received in the same way, and even if it is received, an average amount of US$ 60 million per month will be received to settle the balance of payments crisis.
That money cannot be used for foreign investments, which are essential for the economic growth of this country. Because of this, these loans do not directly provide any remedy for the current economic collapse. If the country’s economy contracts by 8.8% this year, as the IMF has warned, the situation will be very serious.
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