Sri Lanka Budget Targets Exports, Deficit Cuts to Clinch IMF Deal

It is estimated that the crisis-hit Sri Lankan economy can turn around by 2023 if budget policies, which are not limited to the recommendations of the International Monetary Fund, are implemented, according to President Ranil Wickremesinghe.

He told parliament that the IMF's recommendations had only been taken into account to stabilize the economy, Wickremesinghe, the country's finance minister, said during his presentation of the first annual budget since he took office in July.

The budget included measures aimed at reducing the government's deficit as Colombo seeks to secure an IMF bailout package to assist the country in recovering from its worst economic crisis in decades as it seeks to secure a bailout package from the IMF.

As a result of high inflation, a weakening currency, and a lack of foreign exchange reserves, the island of 22 million people has struggled to pay for imports of food, fuel, and medicines that are essential to their survival.

In the aftermath of the unrest, the previous president and prime minister were forced from office, and the country remains vulnerable to political instability as fears of a global recession have added to the difficulties of an economy which has seen a catastrophic contraction in recent years.