IMF approves $2.9bn bailout for struggling Sri Lankan economy.

Sri Lanka has secured a $2.9bn bailout from the IMF to help its struggling economy, which has been hit hard by the pandemic, rising energy prices, populist tax cuts, and inflation of more than 50%. The country defaulted on its debts with international lenders last May for the first time in its history. The government plans to raise funds by restructuring state-owned enterprises and privatising the national airline, but analysts warn that Sri Lanka still faces a tough road ahead towards economic growth and external stability.