Sri Lanka’s Market Losses Set to Worsen on Polls, Analysts Say

There is a worry about tinkering with IMF plan: John Keells
Opposition leaders have signaled to renegotiate with IMF

There is a risk of a stand-off with the IMF if one of the frontrunners Anura Kumara Dissanayake wins as his party may try to revise debt restructuring terms while giving ambitious tax reliefs, according to Bloomberg Economics. — There is a risk of a stand-off with the IMF if one of the frontrunners Anura Kumara Dissanayake wins as his party may try to revise debt restructuring terms while giving ambitious tax reliefs, according to Bloomberg Economics.
Photographer: Ishara S. Kodikara/AFP/Getty Images

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By Ronojoy Mazumdar and Ashutosh Joshi

September 20, 2024 at 2:02 AM UTC

This article is for subscribers only.

Sri Lankan assets look set for more losses amid risks to the International Monetary Fund’s loan program after key candidates vowed to renegotiate terms after elections, according to analysts.

Stocks have slumped 13% from a May peak, while the nation’s dollar bonds are headed for their worst quarter in two years. The rupee has slipped more than 1% this month. Opposition leaders have said they want to rework the terms as the IMF loan program entailed several austerity measures, including higher taxes.