Sri Lanka is currently negotiating debt restructuring (File)
Colombo:
Sri Lanka’s parliament on Friday approved a USD 3 billion IMF bailout package to revive the island’s economy, badly hit by years of mismanagement and a devastating economic and humanitarian crisis triggered by the raging pandemic.
Last month, the International Monetary Fund (IMF) approved a bailout program to help Sri Lanka overcome its economic crisis and catalyze financial support from other development partners, a “historic milestone” by Colombo in a critical period. ” hailed as.
At the end of the 3-day debate on Friday, 120 Members of Parliament in the 225-member assembly voted in favor of the deal, while 25 of them opposed it.
President Ranil Wickremesinghe told parliament that parliamentary approval was a necessity as his government was launching a serious economic reform programme.
Ranil Wickremesinghe, also the finance minister, said in his parliamentary speech that it was important for economic reform to stabilize the economy, restore debt sustainability and create an inclusive and prosperous country.
Members of the main opposition Material Jana Balawegaya (SJB), who have accused the government of lack of transparency in availing the facility, were not present in the House when the vote was taken.
After availing the USD 3 billion facility, Sri Lanka is currently negotiating debt restructuring with bilateral and multilateral creditors.
Ranil Wickremesinghe said the restructuring program would be implemented by mid-May.
Sri Lanka in April declared its first debt default in its history amid the worst economic crisis since independence from Britain in 1948, sparking public protests over a shortage of foreign exchange.
It led months of protests to oust then-President Gotabaya Rajapaksa in mid-July. Gotabaya Rajapaksa had initiated the IMF talks after they refused to tap the global lender for support.
Sri Lanka has introduced painful economic measures such as tax hikes and utility rate hikes to unlock the program. Trade unions and opposition groups have protested against such measures.
The program will allow Sri Lanka to access funding of up to USD 7 billion from the IMF, International Financial Institutions (IFIs) and multilateral organisations, it said in a statement.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)