The International Monetary Fund (IMF) has expressed its readiness to engage in discussions regarding its $2.9 billion bailout program with Sri Lanka’s newly elected leftist government, led by President Anura Kumara Dissanayake.

Dissanayake, who was sworn in recently, aims to renegotiate the bailout deal that has been met with public discontent due to associated austerity measures.

An IMF spokesperson emphasized the importance of collaboration with the new administration to build upon the progress made towards economic recovery since the country defaulted on its debt in April 2022.

A senior aide to Dissanayake confirmed that while the People’s Liberation Front party does not intend to abandon the IMF agreement, they plan to introduce amendments to it.

The aide reassured that the program is a binding document but noted that renegotiation is possible.

Following Dissanayake’s inauguration, Sri Lanka’s stock market initially dipped but later rebounded, closing up by 1.19 percent.

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The new president has committed to reducing income taxes and cutting sales taxes on essential goods, aiming to integrate these changes into the ongoing bailout program.

Concerns had been raised by Dissanayake’s opponents about potential disruptions to the IMF program, fearing a return to the economic turmoil experienced in 2022, which was marked by severe shortages and widespread protests that led to the resignation of the former president.