The IMF staff-level agreement with Sri Lanka on a USD2.9 billion programme, confirmed on 1 September, appears to signal a sharp change in policy settings in order to achieve macroeconomic stability, including through large fiscal adjustment, greater exchange-rate flexibility and more central bank autonomy, says Fitch Ratings.
This should facilitate negotiations with official and private creditors, but the timing of any debt restructuring agreement remains uncertain, the rating agency added.
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