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“Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability while protecting the poor and vulnerable. In this regard, the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor.” From the statement made by Ms. Kristalina Georgieva, Managing Director, IMF after Executive Directors approved EFF assistance to Sri Lanka on 20 March 2023.

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Raghuram Rajan became famous for predicting the 2007-08 crisis and its causes two years earlier. He warned of a looming “catastrophic meltdown” in financial markets thanks to “housing prices that are at elevated levels around the globe.

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