Sri Lanka to take $1.5 billion IMF loan
Sri Lanka reached an agreement with the International Monetary Fund for $1.5 billion in loans to help lower its borrowing costs and bolster finances.
The Washington-based lender said in a statement that the South Asian nation has pledged to narrow its fiscal deficit to 3.5 percent of GDP by 2020 through “a comprehensive set of reforms to Sri Lanka’s tax system.”
The loan program will need approval by the IMF’s executive board, which is due to consider it in early June.
The IMF said that once approved, it is “expected to catalyze an additional $650 million in other multilateral and bilateral loans, bringing total support to about $2.2 billion, over and above existing financing arrangements.”
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