Sri Lanka to get first slice of IMF bailout funds

STORY: Sri Lanka will get $330 million from the International Monetary Fund on Thursday (March 23).

It's the first set of funds due after the global lender approved a nearly $3 billion bailout on Monday (Monday 20).

The country needed support due to economic mismanagement and the impact of the health crisis.

It left the country short of dollars for essential imports at the start of the last year, and pushed it into its worst financial crisis in seven decades.

Sri Lankan President Ranil Wickremesinghe:

“Sri Lanka is no longer a bankrupt nation. Therefore we can restart normal transactions. As our foreign exchange situation improves, we will gradually roll back import restrictions. Essential goods, medicine and things needed for the tourist industry will be in the first round.”

He further said the programme would help the country access up to $7 billion in overall funding.

But the IMF money will not immediately help millions of Sri Lankans.

Locals have been hit by a soaring cost of living and high income taxes.

Power tariffs alone have jumped 66%, while charity researchers say half of all families have had to reduce how much they feed their children.

On Tuesday (March 20), some citizens said they hoped the funds would ease some of their burden.

“Good we got it. It must be spent to solve the country’s problems. If they steal that also then we will lose again. If they reduce the price of fuel and food items and give people some relief, then it is good.”

The IMF's support is expected to lead to more from the likes of the World Bank, Asian Development Bank and other lenders.

The aim is to get Sri Lanka to lower its debt to sustainable levels.

The country's central bank governor said last month Sri Lanka aims to announce a debt-restructuring strategy in April.