Crisis-prone Sri Lanka’s difficulties may increase further! What will happen if loan is not received from IMF?

Sri Lanka News : Daily Mirror newspaper has claimed in one of its news on the basis of a report in Washington DC that Sri Lanka may miss the deadline of next month on the basis of which it has to apply to the International Monetary Fund. (IMF) will get loan. 

According to the news of the newspaper, the deadline of the International Monetary Fund (IMF) is December. If Sri Lanka misses it, it will have to wait till March 2023 to secure a loan of US$ 2.9 billion from the IMF in eight equal tranches. 

Sri Lanka hopes for relief package 

President Ranil Wickremesinghe said that if we can go ahead and reach an agreement by December, which means an agreement by mid-November and go to the IMF board in mid-December, then we will have a big advantage. However, I don’t know whether we can do it. 

Rajapaksa fled the country in July 

Wickremesinghe took over as President after Gotabaya Rajapaksa. Gotabaya fled the country in July after angry protesters stormed the president’s home following an economic crisis with shortages of all essentials, including food, fuel and medicine. 

Let us tell you that Sri Lanka is facing an unprecedented macroeconomic crisis. Years of fiscal indiscipline and risky commercial borrowings have resulted in abysmal levels of public debt. Official reserves and net foreign assets in the banking system have been depleted. 

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