Crisis-ridden Sri Lanka’s economic reforms are yielding results, but challenges remain, IMF says

By BHARATHA MALLAWARACHI
Associated Press

COLOMBO, Sri Lanka (AP) — The International Monetary Fund says debt-stricken Sri Lanka’s economic reform program is yielding the first signs of recovery, but the improvements still need to translate into improved living conditions for its people. Sri Lanka has been struggling with an economic crisis since declaring bankruptcy in April 2022 with more than $83 billion in debt, more than half of it to foreign creditors. The crisis caused severe shortages of food, fuel and other necessities. Strident public protests led to the ouster of then-President Gotabaya Rajapaksa. The IMF agreed last March to a $2.9 billion bailout package. It released the first payment shortly thereafter and the second tranche last month.