Sri Lanka Budget Targets Exports, Deficit Cuts to Clinch IMF Deal
President Ranil Wickremesinghe stated on Monday that the Sri Lankan economy, which is currently in crisis, could see a positive turnaround in the end of 2023 if budget policies, not solely based on the recommendations of the International Monetary Fund (IMF), are implemented.
Wickremesinghe, who also serves as the country's finance minister, informed parliament that IMF recommendations have been considered primarily for stabilizing the economy. This comes as he delivered the first annual budget since assuming office in July.
The budget includes measures aimed at reducing the government's deficit as Colombo endeavors to secure an IMF bailout package to aid the country in recovering from its most severe financial crisis in decades.
With soaring inflation, a depreciating currency, and dwindling foreign exchange reserves, the island nation of 22 million people is facing challenges in covering the costs of importing essential items like food, fuel, and medicine.
Political upheaval, leading to the resignation of the previous president and prime minister due to mass unrest, has left the country susceptible to instability. Moreover, fears of a global recession have compounded the challenges for an economy that has experienced a significant contraction.
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