Rumors of Pakistan Economy Default until IMF Loans Return

As a result of these challenges, the Sri Lankan government was forced to seek financial assistance from international organizations, including the International Monetary Fund (IMF). The IMF provided a $1.5 billion loan to Sri Lanka to help stabilize the country’s economy, but in return, the government had to implement a number of austerity measures, including cutting spending, raising taxes, and reducing subsidies. The measures were designed to help bring the country’s fiscal deficit under control and restore stability to the economy. While the Sri Lankan economy has improved since the crisis, it remains vulnerable to external shocks and will need to continue to implement responsible economic policies in order to sustain its recovery.