On Monday, the International Monetary Fund has approved a loan of almost 3 billion dollars (about 2.8 billion euros) to Sri Lanka, which since the beginning of 2022 has been going through a very harsh economic crisis, the most serious since the independence of the United Kingdom obtained in 1948. The collapse of The economy had led to massive protests and subsequent government resignations, and a subsequent major 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; it 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 the main creditors. In exchange for the loan, Sri Lanka will have to implement a series of structural and fiscal reforms to revive its economy.