IMF = International Monetary Fund has officially decided to provide financial assistance of approximately 4 billion dollars over four years to Sri Lanka, which is in economic crisis. The challenge will be whether Sri Lanka can rebuild its economy in the future.
Sri Lanka in South Asia has fallen into an economic crisis due to a serious shortage of foreign currency, and rapid currency depreciation and inflation are still continuing.
The IMF announced on May 20 that its Board of Directors has decided to provide approximately 4 billion dollars in financial assistance to Sri Lanka over four years, or approximately 30 billion yen in Japan yen, through the framework of the loan facility.
The loan was agreed at the working level in September last year, and the condition of formal approval was that Sri Lanka's major creditors would commit to cooperate in debt restructuring, including changing repayment terms.
Cooperation from creditor countries such as China, Japan and India was expected, and the Board of Directors made an official decision.
In response to the IMF's announcement, Sri Lankan President Wickremesinghe issued a statement welcoming financial assistance, saying, "We will rebuild the economy from a long-term perspective through prudent fiscal management and large-scale reforms."
For Sri Lanka, the challenge is whether it can rebuild its economy by promoting fiscal reform and industrial development while assistance is being provided.