IMF To Assess Corruption In Sri Lanka, Offer $3B Bailout

The International Monetary Fund said on Tuesday that it is assessing Sri Lanka’s governance.

This is the first case of an Asian country facing scrutiny for corruption as part of a bailout program.

The senior mission chief for the IMF in Sri Lanka, Peter Breuer said; "The IMF is conducting an in-depth governance diagnostic exercise which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritized and sequenced recommendations.

“Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organizations on this critical reform area."

The IMF executive board approved a nearly $3 billion bailout plan for Sri Lanka on Monday.

Also, about $333 million was to be disbursed immediately to help alleviate the country’s humanitarian crisis.

The approval also will open up financial support from other institutions.

With the IMF approval, Sri Lanka will no longer be considered a bankrupt nation and the country can resume its normal transactions.

Sri Lankans last year took to the streets to protest and demand accountability for alleged corruption and demanding recovery of assets allegedly stolen.

This led to street protests that forced out the country’s president, Gotabaya Rajapaksa.

The economic situation has improved under current President Ranil Wickremesinghe.