Sri Lanka’s crisis offers an opportunity to reset its development model
Lanka Business OnlineFeb 28, 2023
Sri Lanka has reportedly obtained a [nearly] $3B bailout from the International Monetary Fund (IMF) as it endures a crippling economic crisis. [Editors Note - widely reported as 2.9B in multiple sources.]
The IMF's Executive Board approved the four-year bailout program, authorizing an immediate release of about $333M and opening up financial support from other institutions following Colombo's adoption of austerity measures to meet IMF preconditions.
While Sri Lanka has endured many hardships over the past few years due to converging crises, the country has an opportunity to rise above economic collapse and political instability to forge a new future. The road to recovery will not be easy, but with some help from creditors and buy-in from citizens, Sri Lanka can start to provide its people with hope and security.
Sri Lanka’s economic crisis has spiraled into a human rights catastrophe that must be addressed before it is too late. Sri Lankans are struggling to put food on the table and many people are unable to receive vital healthcare. The IMF’s loan will do little to reverse the deep human cost of the ongoing crisis until the country's social problems are effectively dealt with.