October 1, 2024
IMF imposing austerity on new Sri Lanka government
The new wave of IMF-imposed austerity measures is now reaching Sri Lanka, and their newly elected center-left government is challenging the usual IMF terms of social welfare cuts, rise in the VAT, and other measures that have the effect of doubling the cost of living and reducing the real wages by half for those that have formal employment. These are the standard IMF free-marked driven policies that typically benefited the elite in the country, while the burden typically falls on the poor. IMF is pushing plans that would reduce the value of retirement funds of working people, such as garment workers and tea pluckers by over half. Meanwhile, wealthy investors in the financial sector have got away scot-free, with their investments untouched. This article in The Guardian by Ahilan Kadirgamar paints a concerning picture of the new wave of IMF austerity measures that are being imposed on countries of the global south.
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