Foreign debt of $51 billion has been abandoned by the nation, and angry protesters broke into the home of the previous president, Gotabaya Rajapaksa, in July. As a result, the leader fled the island and announced his resignation from Singapore.
After nine days of meetings in Sri Lanka’s capital city of Colombo, the IMF declared that the country was “faced with an acute crisis… disproportionately borne by the poor and vulnerable.”
The staff agreement from Thursday must be approved by the IMF board and is dependent upon the government reaching an arrangement with its creditors to restructure its debt.
However, Peter Breuer, the chief of mission for the lender, stated that in order for Sri Lanka to recover from its “deep crisis” and resume debt repayment, creditors must also assist it.