The Fund mission approved the latest tranche of its four-year $2.9 billion bailout provided officials restore cost recovery in energy pricing, among other conditions. The IMF is opposed to general energy subsidies, and wants Colombo to ensure cost recovery in electricity prices, which are subsidised for smaller consumers. "Sri Lanka is significantly exposed to the Middle East conflict, which has heightened energy prices, disrupted a key air hub for tourists, and affected Sri Lankans working in the region," the IMF said in a statement. The World Bank estimated infrastructure damage at $4.1 billion, and the government requested the IMF give it a $206 million emergency loan for disaster relief instead. Sri Lanka's economy suffered its worst recession in 2022, contracting 7.3 percent, when then-president Gotabaya Rajapaksa resigned after months of street protests.

Source: Bangladesh Sangbad Sangstha April 09, 2026 07:21 UTC