WORLD NEWS | IMF-Lanier deal could strengthen pro-China forces in Sri Lanka: report

colombo [Sri Lanka]March 22 (ANI): After the International Monetary Fund (IMF) approved a 48-month extension under the $3 billion Extended Fund Facility to support Sri Lanka’s economic policies and reforms, there are rumors that President Ranier Vijay The deal between Kramesinghe and the IMF may make room for pro-China forces to rise in the island nation, Mawrata News reported.

Writing in Mawrata News, Upul Joseph Fernando said the IMF-Ranil agreement is an ideal opportunity for the pro-Chinese community to reemerge.

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Most Sri Lankans believe that Lanier’s government is protecting a corrupt regime.

Sri Lankans despised the IMF in 2002 and 2015-2019 as the Lanier government struggled to enforce IMF conditions. According to Mawrata News, due to Ranil’s arrogant enforcement of IMF conditions in 2004 and 2019, anti-IMF, pro-community Chinese forces have risen.

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Lanier, who is not in fiduciary, got the IMF loan as the U.S., India and Japan feared that bankrupt Sri Lanka would seek Chinese aid, Fernando said.

During the “Alagalaya” period, anti-China sentiment was widespread, and the International Monetary Fund rose to fame. Anti-IMF sentiment is likely to resurface due to Ranil’s dealings with the IMF.

Aragalaya, which means “struggle” in Sinhala, is widely used to describe the daily gatherings of people in Colombo, which began with calls for Gotabaya to resign as president to make way for a new system, or even a “new system”.

In its essence, aragalaya also captures the daily struggle of Sri Lankans to find food, fuel and medicine, bringing them together in ‘janatha aragalaya’ – a people’s struggle.

It is largely leaderless, although some individuals occasionally speak for the group.

All opposition parties, civil society and religious leaders said that even if a staff-level agreement was reached, a government with mandate would be needed in order to be approved by the IMF board. According to Mawrata News, the opposition believes the government currently lacks a mandate.

Even after Gotabaya left office and Ranier became president, Sri Lanka’s opposition, civil society and religious leaders said that a new government must be formed through general elections to reach an agreement with the IMF. However, Lanier defied public opinion and signed a staff-level agreement.

Sri Lanka has been facing a severe economic crisis due to past policy mistakes and economic shocks.

The IMF said Sri Lankan authorities and creditors must now coordinate closely and make rapid progress towards debt processing that restores debt sustainability under the IMF’s Extended Fund Support Programme.

The IMF further stated that Sri Lanka must now continue the momentum towards broader reforms by the authorities and the Sri Lankan people.

According to the IMF, Sri Lanka’s public debt at 128% of GDP by the end of 2022 is unsustainable. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)