{"id":127216,"date":"2022-07-22T16:14:50","date_gmt":"2022-07-22T23:14:50","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=127216"},"modified":"2022-07-22T16:14:50","modified_gmt":"2022-07-22T23:14:50","slug":"sri-lanka-wont-get-a-bailout-from-the-imf-until-chaos-ends-johns-hopkins-professor-says","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2022\/07\/22\/sri-lanka-wont-get-a-bailout-from-the-imf-until-chaos-ends-johns-hopkins-professor-says\/","title":{"rendered":"Sri Lanka won\u2019t get a bailout from the IMF until chaos ends, Johns Hopkins professor says"},"content":{"rendered":"<h2><span style=\"color: #0000ff;\"><em><a class=\"Author-authorName\" style=\"color: #0000ff;\" href=\"https:\/\/www.cnbc.com\/ravi-buddhavarapu\/\">Ravi Buddhavarapu<\/a> Courtesy CNBC<\/em><\/span><\/h2>\n\n\n<p>KEY POINTS<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The IMF cannot\u2026 interact with the government when things are in a continuing crisis mode. So until the government stabilizes, until they have a minister of finance, there\u2019s no one for the IMF to talk with,\u201d professor Deborah Brautigam told CNBC\u2019s Squawk Box Asia\u201d on Friday.<\/li><li>The IMF will not lend into a situation where they deem their money will not be repaid,\u201d&nbsp;she added.<\/li><\/ul>\n\n\n\n<p>Sri Lanka will need to emerge from its current state of chaos before the International Monetary Fund can step in with a bailout, according to a professor from Johns Hopkins University.<\/p>\n\n\n\n<p>The IMF cannot\u2026 interact with the government when things are in a continuing crisis mode. So until the government stabilizes, until they have a minister of finance, there\u2019s no one for the IMF to talk with,\u201d Deborah Brautigam told CNBC\u2019s <a href=\"https:\/\/www.cnbc.com\/asia-squawk-box\/\">Squawk Box Asia<\/a>\u201d on Friday.<\/p>\n\n\n\n<p>Sri Lanka has been wracked by months of protests and is suffering its worst economic crisis since independence.<\/p>\n\n\n\n<p>Ordinary people are struggling to buy essentials such as food, medicine and fuel, setting off raging protests against the government\u2019s mismanagement. Last week, ex-president Gotabaya Rajapaksa fled the country and resigned after protesters stormed his residence.<\/p>\n\n\n\n<p>The country\u2019s legislators have since elected Ranil Wickremesinghe, the country\u2019s former prime minister, as president. The 73-year-old took over as prime minister in May when Rajapaksa\u2019s elder brother Mahinda Rajapaksa resigned.<\/p>\n\n\n\n<p>It is not yet clear if these changes in leadership will satisfy protesters.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107092638-1658478519888-gettyimages-1241800015-AFP_32E62WR.jpeg?v=1658478928&amp;w=929&amp;h=523\" alt=\"TOPSHOT - Protestors participate in an anti-government demonstration outside the President's office in Colombo on July 9, 2022. - Sri Lanka's beleaguered President Gotabaya Rajapaksa fled his official residence in Colombo, a top defence source told AFP, before protesters gathered to demand his resignation stormed the compound. (Photo by AFP) (Photo by -\/AFP via Getty Images)\"\/><\/figure>\n\n\n\n<p>The IMF cannot offer a program to Sri Lanka as long as the chaos in the country continues, says an expert. Raging protests have roiled the nation for months, with a file photo here capturing an anti-government demonstration outside the President\u2019s office in Colombo earlier this month.<\/p>\n\n\n\n<p>&#8211; | Afp | Getty Images<\/p>\n\n\n\n<p>The IMF needs to be able to work with the Sri Lankan government to put together a program, said Brautigam, a professor of international political economy.<\/p>\n\n\n\n<p>The IMF will not lend into a situation where they deem their money will not be repaid,\u201d&nbsp;she added.<\/p>\n\n\n\n<p>But uncertainty continued on Friday, with&nbsp;<a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/sri-lankan-security-troops-raid-protest-camp-media-reports-2022-07-21\/\" target=\"_blank\" rel=\"noreferrer noopener\">Wickremesinghe sending troops<\/a>&nbsp;into a popular protest site, with soldiers destroying tents and makeshift camps a day after he was sworn in, Reuters reported.<\/p>\n\n\n\n<p>The Johns Hopkins professor also said the IMF needs assurances from the government that it will get its fiscal house in order.\u201d&nbsp; She said the IMF<strong>&nbsp;<\/strong>would try to make sure that government revenues and their expenditures match up better.\u201d<\/p>\n\n\n\n<p>WATCH NOW<\/p>\n\n\n\n<p>VIDEO02:21<\/p>\n\n\n\n<p>Sri Lanka\u2019s new president is showing that he\u2019s in \u2018full control\u2019: Opposition MP<\/p>\n\n\n\n<p>And so if Sri Lanka cannot provide assurances, there will be nothing forthcoming from the IMF,\u201d Brautigam said, adding that Sri Lanka would be unable to provide what is needed as long as the crisis is ongoing.\u201d&nbsp;<\/p>\n\n\n\n<p>She said the IMF will also seek assurances from Sri Lanka\u2019s creditors that they will provide whatever assistance is necessary to bring the country\u2019s debt to a sustainable level.<\/p>\n\n\n\n<p>The IMF cannot go ahead with a program for the country without those assurances, she added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ravi Buddhavarapu Courtesy CNBC KEY POINTS The IMF cannot\u2026 interact with the government when things are in a continuing crisis mode. So until the government stabilizes, until they have a minister of finance, there\u2019s no one for the IMF to talk with,\u201d professor Deborah Brautigam told CNBC\u2019s Squawk Box Asia\u201d on Friday. The IMF will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-127216","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/127216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=127216"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/127216\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=127216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=127216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=127216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}