Sovereign Analysis /
Sri Lanka

Sri Lanka: Interim Budget is encouraging but credibility will be tested

  • 2022 deficit target revised from 8.8% to 9.8% of GDP and primary balance expected to improve 6pp to 2% surplus by 2025

  • IMF mission ends tomorrow and is expected to result in staff-level agreement, paving the way for creditor negotiations

  • Prior policy actions and financing assurances needed to secure Board approval, which could cause delays; retain Hold

Sri Lanka: Interim Budget is encouraging but credibility will be tested
Patrick Curran
Tellimer Research
31 August 2022
Published byTellimer Research

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