VOA新闻杂志2023--IMF Approves $3 Billion Bailout for Sri Lanka

IMF Approves $3 Billion Bailout for Sri Lanka

The International Monetary¹ Fund (IMF) approved a nearly $3 billion financial assistance plan for Sri Lanka Monday. The IMF also said it will carefully study Sri Lanka's governing practices including possible corruption² as part of the program.

About $333 million will be immediately provided to help solve the country's humanitarian³ crisis. The approval will also open up financial support from other international institutions.

The South Asian country suspended repayment⁴ of its debt last year when it lacked foreign currency needed to pay for imports of fuel and other important goods. The shortages led to street protests that forced out the country's president.

The economic situation has improved under current President Ranil Wickremesinghe. But his plans to privatize state companies have brought opposition⁵.

Peter Breuer is the top IMF official in Sri Lanka. He said the IMF would study corruption and governance weaknesses in Sri Lanka and provide suggestions.

Since last year, Sri Lankans have protested in the street demanding punishment and recovery of money allegedly stolen by members of a former ruling family. Critics of the government say corruption has been the main factor behind the country's economic crisis.

Kristalina Georgieva is IMF's managing director. She said in a statement that Sri Lanka's institutions and governance "require deep reforms."

The IMF's approval means Sri Lanka will no longer be considered a bankrupt nation. The country can also restart its normal dealings, Wickremesinghe said in a statement on Tuesday. The approval will unlock financing of up to $7 billion from other international financial institutions.

Wickremesinghe said that as Sri Lanka's foreign currency improves, the country will slowly lift import restrictions⁷. He said, "we will bring in essential goods, medicines and goods needed for the tourism industry." He added that he expects to present the agreement with the IMF to Parliament Wednesday.

Earlier this month, the last step for the approval was cleared when China joined Sri Lanka's other lenders in providing promises for debt restructuring. China owns about 10 percent of Sri Lanka's total foreign debt.

The IMF required Sri Lanka to raise income taxes and remove government support for electricity and fuel. But Breuer said the impact of the reforms on the poor needs to be limited.

Officials must now discuss with Sri Lanka's lenders how to restructure its debt.

Sri Lanka's foreign currency ran short as tourism and export earnings⁸ fell during the COVID-19 pandemic. Sri Lanka also faced heavy debt payments to Chinese and other lenders for large projects that did not create enough earnings. Sri Lanka also used its foreign currency holdings to try to strengthen Sri Lankan money, the rupee.

Since Wickremesinghe became president, shortages have eased and hours-long daily power cuts have ended. The central bank says its currency holdings have improved and the black market no longer controls the foreign currency trade.

However, workers' organizations oppose Wickremesinghe's plans to privatize state companies as part of his reform plan. And public anger may spread if he fails to act against the Rajapaksa family, who people believe were responsible for the economic crisis.

Wickremesinghe's critics accuse him of protecting the Rajapaksa family in return for their support for his presidency⁹.

Words in This Story

institution — n. an established organization

currency — n. the money that a country uses

alleged⁶ — adj. accused of having done something wrong or illegal but not yet proven guilty

factor — n. something that helps produce or influence a result

bankrupt — adj. unable to pay debts

essential — adj. extremely important and necessary

tourism — n. the activity of traveling to a place for pleasure

income — n. money that is earned from work, investments, business, etc.

1 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

2 corruption   

n.腐败，堕落，贪污

参考例句：

• The people asked the government to hit out against corruption and theft.人民要求政府严惩贪污盗窃。
• The old man reviled against corruption.那老人痛斥了贪污舞弊。

3 humanitarian   

n.人道主义者，博爱者，基督凡人论者

参考例句：

• She has many humanitarian interests and contributes a lot to them.她拥有很多慈善事业，并作了很大的贡献。
• The British government has now suspended humanitarian aid to the area.英国政府现已暂停对这一地区的人道主义援助。

4 repayment   

n.偿还，偿还款；报酬

参考例句：

• I am entitled to a repayment for the damaged goods.我有权利索取货物损坏赔偿金。
• The tax authorities have been harrying her for repayment.税务局一直在催她补交税款。

5 opposition   

n.反对，敌对

参考例句：

• The party leader is facing opposition in his own backyard.该党领袖在自己的党內遇到了反对。
• The police tried to break down the prisoner's opposition.警察设法制住了那个囚犯的反抗。

6 alleged   

a.被指控的，嫌疑的

参考例句：

• It was alleged that he had taken bribes while in office. 他被指称在任时收受贿赂。
• alleged irregularities in the election campaign 被指称竞选运动中的不正当行为

7 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

8 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

9 presidency   

n.总统(校长，总经理)的职位(任期)

参考例句：

• Roosevelt was elected four times to the presidency of the United States.罗斯福连续当选四届美国总统。
• Two candidates are emerging as contestants for the presidency.两位候选人最终成为总统职位竞争者。