IMF Releases Second Tranche of Bailout Package to Sri Lanka

The $337 million tranche comes as Sri Lanka shows progress in debt sustainability and financial stability amid ongoing economic crisis.

The International Monetary Fund (IMF) executive board has approved the release of the second tranche of a $2.9 billion bailout package to Sri Lanka, amounting to $337 million.
The approval comes after Sri Lanka made 'commendable progress' toward debt sustainability, raising revenue, rebuilding its reserves, reducing inflation, and safeguarding financial stability.
Sri Lanka had previously reached a debt restructuring agreement with China's EXIM Bank covering $4.2 billion in outstanding debt.
The country is hoping to restructure $17 billion of its tens of billions of outstanding debt.
Despite improvements, public dissatisfaction has grown over the government's efforts to increase revenues by raising electricity bills and imposing heavy new income taxes on professionals and businesses.