Skip to content
Search

Latest Stories

IMF bailout will be followed by difficult times, warns Sri Lankan president

IMF bailout will be followed by difficult times, warns Sri Lankan president

Sri Lanka's president on Wednesday (22) cautioned that the country would face further economic challenges and that strict austerity measures would be necessary to repair its damaged finances following an IMF bailout agreement.

The International Monetary Fund granted approval for the delayed rescue package on Monday, with China - Sri Lanka's largest bilateral lender - providing assurances on debt relief.


While President Ranil Wickremesinghe praised the deal as a significant step towards Sri Lanka's recovery from the unprecedented economic crisis it faced last year, he also emphasised to parliament that the bailout was merely the initial stage of more demanding structural reforms.

"The IMF loan is not an end in itself, this is the beginning of a long and more difficult journey," Wickremesinghe said.

"We have to traverse it with care and courage. The only objective is to rebuild the economy."

Last April, Sri Lanka defaulted on its foreign debt of $46 billion, having nearly depleted its foreign exchange reserves. This situation made it extremely challenging for importers to obtain essential goods.

As a result, the country's 22 million citizens had to endure months of shortages of food and petrol, coupled with high inflation rates and extended periods without electricity.

In an effort to replenish government funds, Wickremesinghe implemented steep tax increases and terminated consumer subsidies on fuel and electricity.

On Wednesday (22) he announced that additional taxes would be implemented to fulfill the IMF's directive of reducing Sri Lanka's spending on foreign debt servicing by 50 per cent from last year's 9 per cent of GDP.

Additionally, the IMF has demanded that Sri Lanka establish stringent anti-corruption regulations and divest money-losing state-owned firms, including troubled carrier SriLankan Airlines.

Wickremesinghe stated that the government would take on the external debts of significant public corporations to make them more appealing to potential investors.

The austerity plan has been met with opposition from trade unions, with recent strikes in the healthcare and transportation sectors causing disruptions. They have also warned of additional industrial action in the future.

(With inputs from AFP)

More For You

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
West Midlands Police

West Midlands Police said they were called just before 08:30 BST on Tuesday, September 9, after the woman reported being attacked by two men near Tame Road. (Representational image: iStock)

Woman raped in racially aggravated attack in Oldbury

A WOMAN in her 20s was raped in Oldbury in what police are treating as a racially aggravated attack.

West Midlands Police said they were called just before 08:30 BST on Tuesday, September 9, after the woman reported being attacked by two men near Tame Road. Officers said the men made a racist remark during the incident.

Keep ReadingShow less
Tommy Robinson

The event, which Robinson has promoted for months, is being billed by him as the 'UK's biggest free speech festival.' (Photo: Getty Images)

London prepares for rival demonstrations, police deploy 1,600 officers

Highlights

  • More than 1,600 officers deployed across London on Saturday
  • Far-right activist Tommy Robinson to lead "Unite the Kingdom" march
  • Anti-racism groups to stage counter-protests in Whitehall
  • Police impose conditions on routes and timings of demonstrations

LONDON police will deploy more than 1,600 officers across the city on Saturday as rival demonstrations take place, including a rally organised by far-right activist Stephen Yaxley-Lennon, known as Tommy Robinson, and a counter-protest by anti-racism campaigners.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
Mandelson-Getty

Starmer dismissed Mandelson on Thursday after reading emails published by Bloomberg in which Mandelson defended Jeffrey Epstein following his 2008 conviction. (Photo: Getty Images)

Getty Images

Minister says Mandelson should never have been appointed

A CABINET minister has said Peter Mandelson should not have been made UK ambassador to the US, as criticism mounted over prime minister Keir Starmer’s judgment in appointing him.

Douglas Alexander, the Scotland secretary, told the BBC that Mandelson’s appointment was seen as “high-risk, high-reward” but that newly revealed emails changed the situation.

Keep ReadingShow less