The country is reaching an agreement with its creditors and the economy is also growing.
12:07•Updated 12:11
The economic discipline of the island nation of Sri Lanka, located in the Indian Ocean, is easing. The country’s government has approved a debt arrangement with its most important 17 creditor countries.
If Parliament approves the deal, it will signal to lenders that new credit can be given to Sri Lanka again.
Sri Lanka drifted into insolvency in 2022 when its foreign reserves ran out as a result of its chaotic economic policies.
The country has now received assistance from the International Monetary Fund. Sri Lanka’s economy is estimated to grow by three percent this year. In the previous two years, the country’s economy shrank.
Source: Reuters