S.Lanka’s economic recovery under threat

Sri Lanka’s recovery from its worst economic meltdown is under threat from the effects of the Middle East war, the International Monetary Fund said Thursday, a day after granting a $695-million bailout installment.

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A technician works inside a factory in Colombo, Sri Lanka.

(REUTERS)

Tough economic reforms since Sri Lanka’s sovereign default in 2022 have placed the country in a better position, IMF mission chief Evan Papageorgiou told a news conference in Washington.

But the Iran war as well as the aftermath of Cyclone Ditwah, which struck in November, “are weighing on the economy and have tilted the risks firmly to the downside,” Papageorgiou said.