Sri Lanka IMF

Comparing the similarities and differences in Sri Lanka’s five latest agreements with the IMF highlights the country’s economic trajectory since 2001.

The government is arming itself with a law to crush mass protests and strikes aimed at opposing its economic policies and IMF austerity measures.

But is the governance diagnostic exercise just another tool to legitimize its austerity measures?

With Beijing extending debt restructuring assurances, the last obstacle in the way of Sri Lanka securing the bailout deal has been removed.

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.