Sri Lanka has reached a preliminary agreement with the International Monetary Fund (IMF) for a loan of about $2.9 billion, the global lender said on Thursday, as the country seeks a way out of its worst economic crisis in decades.
\nAccording to international media, the agreement, which Reuters first reported on Wednesday, is subject to approval by IMF management and its executive board, and is contingent on Sri Lankan authorities following through with previously agreed measures.
\n\u201cThe staff-level agreement is only the beginning of a long road for Sri Lanka,\u201d senior IMF official Peter Breuer told reporters in the commercial capital Colombo.
\nThe IMF requires receiving financing assurances from Sri Lanka’s official creditors, besides ensuring efforts are made to reach a collaborative agreement with private creditors.
\nThe IMF programme, spread over 48 months, will aim to raise government revenue to support fiscal consolidation, introduce new pricing for fuel and electricity, hike social spending, bolster central bank autonomy and rebuild depleted foreign reserves.
\n\u201cStarting from one of the lowest revenue levels in the world, the programme will implement major tax reforms. These reforms include making personal income tax more progressive and broadening the tax base for corporate income tax and VAT,\u201d the statement said.
\n\u201cThe programme aims to reach a primary surplus of 2.3 per cent of GDP by 2024,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"
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