An IMF spokesman in Washington said on Monday, “We look forward to working closely with President Dissanayake … to build on the hard-earned achievements that have put Sri Lanka on the path to economic recovery.” “I have helped.”
“We will discuss with the new administration the timing of the third review of the IMF-supported program as soon as possible,” the spokesperson said, referring to the periodic review of the bailout.
However, analysts say Dissanayake has little scope to reshape the terms of the deal.
“There are some red lines on which the IMF will not agree to negotiate,” Murtaza Jafferjee of Advokata, a Colombo-based economic think tank, told AFP.
He said there was little chance of the IMF retreating from the main components of its US$2.9 billion bailout, including restrictions on money printing and revenue and spending targets agreed to by the previous administration.