Sri Lanka IMF

Beijing is resisting cuts to Sri Lanka's debts for fear other borrowers will want similar relief.

Instead, it should retrain its soldiers and redeploy them in policing, peacekeeping, and disaster rescue and relief roles.

Once again, the country is forced to seek a bailout from the IMF – with all the costs and benefits that entails.

The recently elected Sri Lankan president has started badly, by using troops to forcibly vacate protest sites in Colombo.

The country needs a credible government that enjoys legitimacy in the eyes of the people. Forming one will be a herculean task.

Sri Lankan economists warn that the country could face a famine-like situation in a few months.

The island's usable foreign reserves are now down to less than $50 million.

Implementing the IMF’s recommendations will be a daunting task for the Rajapaksa government as it will be resisted by the masses, opposition parties, and trade unions.

The government had resisted dealing with the IMF, claiming that this would undermine the country's interests. Its latest decision marks a policy shift.