
Sri Lanka: Keeping the Storm at Bay
Sri Lanka’s interlocking economic and political crises remain acute. In this excerpt from the Watch List 2022 – Autumn Update, Crisis Group lays out what the EU and its member states can do to mitigate the risks of needed reforms.
Despite relative calm on the streets since mass protests forced President Gotabaya Rajapaksa to resign in early July, Sri Lanka’s interlocking economic and political crises remain acute. Selected by parliament to succeed Rajapaksa, Ranil Wickremesinghe has since secured a preliminary agreement with the International Monetary Fund (IMF) for a $2.9 billion bailout loan known as an Extended Funds Facility (EFF). The deal is a necessary first step toward addressing its economic woes, but even if Colombo succeeds in convincing its international creditors to reduce its debts – which the IMF requires to disburse its loan – major challenges remain.… Seguir leyendo »