Sri Lanka’s cabinet recently approved a new economic law aligning with key objectives outlined by the International Monetary Fund (IMF), announced the cabinet spokesperson. After facing its severest financial crisis in over seven decades in 2022, including a default on foreign debt due to plummeting reserves, the nation’s economy is on the mend. Following the IMF’s approval of a $2.9 billion bailout last April, Sri Lanka is projected to achieve a 3% growth rate this year.
The newly introduced Economic Transformation bill aims to enshrine various targets from the IMF program into law. These targets include lowering the debt-to-GDP ratio to 95% by 2030 and reducing debt servicing costs to 4.5% of GDP. This move signifies a strategic step toward economic recovery and stability in Sri Lanka.
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