More economic pain to come

Sri Lanka's president yesterday warned of more economic pain to come for the crisis-hit nation, with strict austerity measures needed to restore its ruined finances after an IMF bailout deal.

The International Monetary Fund approved its long-delayed rescue package on Monday after China, the South Asian island's biggest bilateral lender, offered debt relief assurances.

President Ranil Wickremesinghe lauded the deal in a speech to parliament as a milestone in Sri Lanka's recovery from last year's unprecedented economic crisis.

But he also told lawmakers that the bailout was only the first step in more difficult structural reforms.