Can the IMF bailout help Sri Lanka exit its economic crisis?

The bankrupt nation faces a tough road ahead.

Years of economic mismanagement and the effects of the pandemic have pushed Sri Lanka into its worst financial crisis since 1948. The dire situation triggered months of protests, forcing President Mahinda Rajapaksa to flee the country last July. On Tuesday, Sri Lankans woke up to some hopeful news – a nearly $3bn bailout from the International Monetary Fund (IMF).

But the bankrupt nation is expected to face tough changes in the next four years. Will Sri Lanka be able to wind back widespread shortages and a soaring cost of living?

Presenter: Nick Clark

Guests:

Eran Wickramaratne, member of Sri Lanka’s parliament and former state minister of finance

Ganeshan Vignaraja, policy adviser and senior research associate for the Overseas Development Institute, Colombo.

Ahilan Kadeelgama, political economist and chairman of the Northern Cooperative Development Bank, Jaffna