Sri Lanka's Economy: The Bitter Medicine of IMF Debt Relief

The entire economy of Sri Lanka is dependent on the debt relief facility offered by the International Monetary Fund (IMF), as per recent statements from various authorities. Sri Lanka hopes that the decision to release the debt will be discussed in the upcoming IMF board meeting and that the first installment of the relief facility will be granted. The government claims that all 15 conditions required for debt relief have been met.

The proposed loan amount is $2.9 billion, which will be given in installments over four years and help strengthen the country's foreign reserves. It may stabilize the economy to some extent and increase the chances of getting loans from international lending institutions like the World Bank at a more favorable interest rate. This loan can also be seen as a small opportunity to relieve some of the economic pressure faced by the country.

However, it is essential to understand that this loan is not a treat served on a plate but a bitter medicine that will require sacrifices from the country. The whole nation will have to bear the consequences and tighten their belts to make the loan successful. The IMF loan is the only solution to the economic crisis, and sacrifices must be made at all levels of the government, not only by the general public paying taxes.

The government played a crucial role in securing the loan, leading to the implementation of unpopular decisions for the working class. Sri Lanka will have to go through major economic reforms that it has not faced before, and both the government and the opposition should have a clear policy regarding the restructuring of state institutions incurring heavy losses, which burden the country's economy.

The government must carry out reforms and impose heavy taxes to increase the country's income at a level that the public can bear. The strike situation in the country revolves around the decision to pay taxes while earning a large percentage of income, increased electricity bills, and other indirect taxes, making life restless for the citizens. The government must be sensitive to the needs of the people to avoid turning the problematic situation into a major crisis.

The government must not only fulfill all the conditions to obtain the loan but also win the trust of the people by looking into the issues that caused the economic crash and taking necessary measures to prevent such a thing from happening again. The government should act against those who contributed to the economic destruction, create a mechanism to eliminate theft, corruption, and fraud, and bring those responsible for large-scale tax frauds to court.