1. Sri Lanka has received a USD 333 million IMF bailout and is set to receive USD 3,000 million over the next 4 years, which may lead to increased debt levels, restructuring or privatization of state assets and enterprises, and significant economic and social upheaval.
2. Fulfilling IMF conditions may require the government to increase tax revenue, significantly cut welfare and development expenditure, discontinue monetary accommodation, increase policy and market interest rates, and restructure or privatize state assets.
3. FX debt restructuring may be required by the IMF if Sri Lanka's debt is deemed unsustainable, with a 2-3 year adjustment period and potential for serious destabilization of the economy and country.
4. Several countries have experienced negative fallout from IMF programs, including severe challenges, financial difficulties, and social unrest.
5. Sri Lanka has received Forex cash loans of USD 1,300 million from the China Development Bank between January 2020 and March 2022, in 3 tranches.