The IMF will give Sri Lanka a bailout package of 2.9 billion dollars

 The International Monetary Fund (IMF) has agreed to provide a $2.9 billion bailout package to support Sri Lanka's economy.

According to the French news agency AFP, the IMF said in a statement after nine days of negotiations in the capital Colombo that Sri Lanka is facing a serious crisis. The new program for Sri Lanka is aimed at restoring economic stability and debt sustainability.

"Sri Lanka has agreed to raise revenue, end subsidies and restore its foreign reserves," the IMF said.

President Ranil Wickremesinghe this week announced more tax hikes and sweeping reforms in an effort to control debt.

His government has already more than tripled fuel and electricity prices and scrapped energy subsidies, a key condition for an IMF bailout.

It should be noted that the Sri Lankan government had declared itself bankrupt due to its foreign debts of 51 billion dollars.

Sri Lanka is unable to import even essential goods due to lack of foreign exchange reserves.

Long queues of cars and motorbikes outside petrol pumps have become the norm, but citizens are getting limited amounts of petrol while government officials have been directed to work from home.

According to the World Food Program of the United Nations, five out of six families are forced to buy low-quality food, have little to eat, and in some cases skip one meal a day.

Former President Gotabaya Rajapakse, who was responsible for the economic crisis, resigned and fled the country last month after public protests and the storming of the government residence.