INSUBCONTINENT EXCLUSIVE:
Asian Development Bank (ADB) has said.The island nation is set to face a presidential election in the last quarter of this year, while the
parliamentary election is due mid-next year.However, political uncertainty prevails in the country as opposition parties have pledged to
reverse the current IMF-linked reforms, which have proved to be unpopular with the masses.President Ranil Wickremesinghe, who has steered
the recovery programme by going into a bailout deal with the International Monetary Fund (IMF) for a USD 2.9 billion facility, maintains
that the island could once again face economic collapse if the IMF programme reforms are not adhered to.Outlining the economic risks Sri
uncertainty associated with the upcoming elections, including any possible impact on fiscal policy and reform implementation.The ADB noted
that there are signs of economic recovery in Lanka and emerging growth had revived in the second half of 2023 and is expected to continue in
2024 and 2025.Inflation decelerated in single digits last year following a peak in 2022 and will remain below 10 per cent in 2024 and 2025
Challenges remain and the upcoming electoral cycle must not delay the reforms required to address the recent economic crisis
its first-ever default of sovereign debt
The negotiations for debt restructuring continue.Delays in the completion of a debt restructuring agreement and any barriers to passing key
legislation could dampen sentiment and derail growth, the report warned.The IMF in March said it had reached a staff-level agreement with
Sri Lanka for the next phase that would enable it access to USD 337 million from the nearly USD 3 billion bailout approved in 2023 for the
island nation.Two tranches of USD 330 million each were released in March and December 2023 even as the global lender praised Colombo for
its macroeconomic policy reforms, which it said, are starting to bear fruit.Source: PTI--Agencies
