High Hopes on IMF approval….

Investors are placing bets that Sri Lanka will receive final IMF approval for a $2.9 billion bailout on Monday, which would be a crucial step in helping the insolvent country recover from its worst economic crisis in decades. 

The best-performing dollar bonds in the world this year, the South Asian country’s bonds have returned 20%. This month, the local currency increased 8%, and stocks increased 5%, outperforming their Asian counterparts as investors anticipated the trickle-down of billions of dollars in financing. While the CSE All-share index dropped more than 30% in 2022, the rupee plunged by 45% last year. 

The money is essential to bringing stability and debt sustainability to a struggling economy.