Sri Lanka’s newly elected President Anura Kumara Dissanayake announced in a televised address on Wednesday (September 25) plans to immediately begin talks with the International Monetary Fund (IMF) to advance the country’s $2.9 billion bailout program.

Dissanayake, a Marxist-leaning parliamentarian, won the presidency on Saturday (September 21) after millions of Sri Lankans backed his promises to cut taxes, fight corruption, and reduce the cost of living.

He seeks to renegotiate the IMF’s revenue targets, aiming to lower high income taxes and redirect funds toward welfare programs for those hardest hit by the ongoing financial crisis.

“Additionally, to advance our debt restructuring program, we are negotiating with relevant creditors to expedite the process and secure necessary debt relief,” Dissanayake said in his televised address.

Dissanayake dissolved parliament on Tuesday (September 24) and is hoping to strengthen his hand in the 225-member house when a general election is held on Nov. 14. His coalition held just three seats in the parliament elected in August 2020.

A severe shortfall of dollars spun Sri Lanka’s economy into a deep financial crisis two years ago, sending inflation soaring to a high of 70% in September 2022 and forcing the country to default on its foreign debt.

(Reuters)