Sri Lanka to move forward with third review of near $3 billion IMF bailout

COLOMBO (Reuters) – Sri Lanka plans to move ahead with the third review of its nearly $3 billion programme of support from the International Monetary Fund, the new government said on Thursday, as the island nation seeks to emerge from its worst financial crisis in decades.

New president Anura Kumara Dissanayake, who was elected last week, has pledged to reduce taxes under the IMF programme.

During a meeting with an IMF delegation in Colombo he said his administration agrees with the broad parameters of the IMF programme but will take another look at value-added tax and direct income tax to reduce the burden on the public.

Sri Lanka needs to complete the third review of its IMF programme in order to receive about $337 million in funds and support the finalisation of a $12.5 billion debt restructuring with bondholders.