Sri Lanka's newly-elected president seeks ‘alternative' solutions to ease burden on country in IMF talks

By Anadolu staff

ANKARA (AA) - Sri Lanka's newly-elected President Anura Kumara Dissanayake reaffirmed his government's commitment Thursday to the goals of the IMF program, emphasizing "alternative approaches to ease the burden” on his people, according to media reports.

The Marxist-leaning Dissanayake revealed his government's plans to reduce the burden, including relief from high value added and income taxes in a meeting with an IMF delegation in Colombo, the News Wire website reported.​​​​​​​

The IMF expressed an openness to discuss the proposals, according to the government.

While reaffirming the government’s broad agreement in principle with the objectives of the IMF program, Dissanayake stressed the importance of achieving the targets through "alternative means" that would relieve the burden on Sri Lankans.

He said his government plans to expand social spending and offer relief to those burdened by high value-added and income taxes.

The IMF reached a staff-level agreement to support crisis-hit Sri Lanka with an extended fund facility of about $2.9 billion following the island country's 2022 default.

Colombo has to pay $46 billion in foreign debt, with installments yet to resume since 2022.

In his inaugural address, Dissanayake, who was elected as the island country's ninth executive president in last month’s crucial election, said his government is negotiating with "relevant" creditors to expedite the process and secure necessary debt relief.

Analysts believe that pledging to continue with the IMF program and simultaneously changing to ease the burden on the poor, will not be easy for the new president.