<p>The International Monetary Fund said on Thursday it had reached a staff-level agreement to support bankrupt Sri Lanka with a $2.9 billion bailout spread over four years.</p>.<p>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.</p>.<p>"The objectives of Sri Lanka's new Fund-supported program are to restore macroeconomic stability and debt sustainability," the IMF said in a statement after nine days of talks in Colombo.</p>.<p>"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.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/sri-lanka-hopeful-of-attracting-1-million-tourists-in-2022-1141031.html" target="_blank">Sri Lanka hopeful of attracting 1 million tourists in 2022</a></strong></p>.<p>"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."</p>.<p>The IMF said Sri Lanka had agreed to increase revenue, remove subsidies, ensure a flexible exchange rate and rebuild its foreign reserves, which had hit rock bottom.</p>.<p>Sri Lanka's unprecedented economic crisis sparked street protests that led to the ouster of then-president Gotabaya Rajapaksa in July.</p>.<p>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.</p>
<p>The International Monetary Fund said on Thursday it had reached a staff-level agreement to support bankrupt Sri Lanka with a $2.9 billion bailout spread over four years.</p>.<p>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.</p>.<p>"The objectives of Sri Lanka's new Fund-supported program are to restore macroeconomic stability and debt sustainability," the IMF said in a statement after nine days of talks in Colombo.</p>.<p>"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.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/sri-lanka-hopeful-of-attracting-1-million-tourists-in-2022-1141031.html" target="_blank">Sri Lanka hopeful of attracting 1 million tourists in 2022</a></strong></p>.<p>"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."</p>.<p>The IMF said Sri Lanka had agreed to increase revenue, remove subsidies, ensure a flexible exchange rate and rebuild its foreign reserves, which had hit rock bottom.</p>.<p>Sri Lanka's unprecedented economic crisis sparked street protests that led to the ouster of then-president Gotabaya Rajapaksa in July.</p>.<p>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.</p>