IMF agrees to $2.9 billion bailout for bankrupt Sri Lanka
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Financial assistance from the international lender of last resort is conditional on a plan to restructure the island nation's $51 billion foreign debt after an April default.
"Debt relief from Sri Lanka's creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps," the statement added.
"Financing assurances to restore debt sustainability from Sri Lanka's official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support."
Sri Lanka's unprecedented economic crisis sparked street protests that led to the ouster of then-president Gotabaya Rajapaksa in July.
The nation of 22 million has been enduring shortages of food, fuel and medicine while facing lengthy power cuts and galloping inflation since late last year.