IMF says the economic situation in debt-stricken Sri Lanka is gradually improving

By BHARATHA MALLAWARACHI
Associated Press

COLOMBO, Sri Lanka (AP) — The International Monetary Fund says the economic situation in debt-stricken Sri Lanka is improving gradually from the country’s worst economic crisis two years ago. The IMF says inflation has come down from a peak of 70% in 2022 to 5.9% last month and Sri Lanka’s economy expanded in the second half of last year following a year and a half of contraction. The economic crisis two years ago left Sri Lanka’s people suffering severe shortages of fuel and other goods, and their strident mass protests led to the ouster of then-President Gotabaya Rajapaksa. The country declared bankruptcy in April 2022 and turned to the IMF for a bailout.