Tue Sep 24 03:46:13 UTC 2024: ## New Sri Lankan President to Renegotiate IMF Bailout, But Will Not Scrap Deal
**COLOMBO, Sri Lanka** – The International Monetary Fund (IMF) has expressed willingness to work with Sri Lanka’s newly elected President Anura Kumara Dissanayake to continue the country’s $2.9 billion bailout program. The program, which has been met with criticism for its austerity measures, will be discussed by the IMF and the new administration soon.
Dissanayake, the first leftist president in Sri Lanka’s history, has pledged to renegotiate the bailout deal, particularly regarding unpopular income and sales taxes. His party, the People’s Liberation Front, has stated that they will not scrap the IMF agreement but will seek amendments to the program.
“We will discuss the timing of the third review of the IMF-supported program with the new administration as soon as practicable,” said an IMF spokesperson. They acknowledged the progress made in stabilizing the Sri Lankan economy since the bailout began, adding, “We look forward to working together with President Dissanayake… towards building on the hard-won gains that have helped put Sri Lanka on a path to economic recovery.”
The IMF’s statement came after a senior aide to the new president, Bimal Ratnayake, indicated that the government intends to engage with the IMF and introduce revisions to the agreement. “We think we can get those reductions [in taxes] into the programme and continue with the four-year bailout programme,” he said.
The new president’s election sparked concerns among some that his Marxist party would abandon the IMF program, potentially leading to a resurgence of the economic crisis that plagued Sri Lanka in 2022. However, both the IMF and the new government have assured the public that the bailout program will continue, albeit with some adjustments.
The Sri Lankan stock market initially fell sharply on Monday when Dissanayake took office, but recovered quickly and ended the day with a 1.19% increase in the main index.
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