Breaking business news | Sri Lankan Leader: IMF Agreement Rejected Following Unrest

Breaking business news | Sri Lankan Leader: IMF Agreement Rejected Following Unrest

The president of Sri Lanka claims that due to recent instability, an agreement with the International Monetary Fund to assist the bankrupt country in resolving its economic problems has been postponed until September.

The AP: COLOMBO, Sri Lanka Sri Lanka’s president announced on Saturday that because of recent instability, a deal with the International Monetary Fund to help the impoverished country out of its economic crisis has been delayed until September.

In his first statement since being elected by Parliament on July 20, President Ranil Wickremesinghe stated that although he as the prime minister had hoped to reach an agreement by early August, it has now been delayed by a month.

Wickremesinghe was chosen to finish the five years left on his predecessor Gotabaya Rajapaksa’s term. Rajapaksa fled to Singapore after violent demonstrators stormed his official residence and took over numerous significant government structures.

According to Wickremesinghe, discussions over a bailout package with the IMF have stalled since those events.

Sri Lanka stated in April that the government is postponing loan repayments to foreign lenders due to a severe lack of foreign currency. $28 billion of the island nation’s $51 billion foreign debt must be repaid by 2027.

Due to the currency crisis, many essential imported goods like fuel, medicine, and cooking gas were in short supply.

In a letter to 225 members of Parliament on Friday, Wickremesinghe asked them to join him in forming a multi-party government to address the situation. He made the same appeal again on Saturday, arguing that blaming prior leaders would not be a solution and that instead, everyone should work together to prevent the nation from further degenerating.

The strong Rajapaksa family, which has dominated Sri Lanka for the majority of the previous two decades, has backed Wickremesinghe, a six-time prime minister, and seasoned politician, in parliament. As a result, Wickremesinghe is unpopular. Many claims that Wickremesinghe is shielding the Rajapaksas from responsibility for the crisis’s instigating corruption and bad governance.

The military has been permitted by Wickremesinghe to clear out protest camps that had been erected close to the president’s office for more than 100 days. The crackdown resulted in the arrest of numerous persons, including protest organizers.

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