The IMF has released a second tranche of loans to Sri Lanka, helping the microeconomic and financial conditions in the country. Worries about emerging economies like Sri Lanka have intensified over previous weeks on the potential of a US fed rate rise and the election of Donald Trump. The Sri Lankan rupee has seen a lot of pressure of late as speculators held on to dollars due to global geopolitical conditions and concerns about potential tax changes in the budget leading foreign investors to exit government securities. The IMF loan will boost confidence that the country is on track.

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