On Monday, the International Monetary Fund approved a loan of almost 3 billion dollars (about 2.8 billion euros) to Sri Lanka, which has been experiencing a very harsh economic crisis since the beginning of 2022, the most serious since the independence of the United Kingdom obtained in 1948. The collapse of the economy had led to large protests and the consequent resignation of the government, and to a subsequent serious political and humanitarian crisis.
The International Monetary Fund has announced that the loan plan provides for the immediate disbursement of 333 million dollars (311 million euros) to help Sri Lanka manage the humanitarian crisis; also provides for the possibility of receiving financial aid from other institutions with the aim of restructuring the country’s enormous public debt, which is around 58 billion dollars (54 billion euros), more than half of its GDP, with China , Japan and various private institutions as major creditors. In exchange for the loan, Sri Lanka will have to implement a series of structural and fiscal reforms to revive its economy.
