Help poor to avoid more Sri Lankas: IMF

Colombo, May 23 (UNI) Anti-government protests now sweeping Sri Lanka could grip other countries too if their governments fail to support the poor, the head of the International Monetary Fund (IMF) has warned.
Governments need to subsidise the cost of food and energy for the poorest members of the society, Kristalina Georgieva told the BBC. Without the correct government support, the protests seen in Sri Lanka could be repeated in other countries, she added.
Georgieva said that people around the world were struggling with the rising cost of living.
She said support needs to be provided “in a very targeted manner, preferably by providing subsidies directly to people”, reported the Daily Mirror here.
Many governments were providing some help but critics argue it’s not enough, she said.
When it comes to the cost of living crisis, Georgieva said: “There are two priorities, one the very poor people, segments of society that are now struggling with high food and energy prices.”
The second, she added, is to support those businesses which have been most damaged by the war in Ukraine.
The IMF’s role is to work with governments to stabilise the global economy and enhance prosperity.
However, that’s proving challenging because food prices have hit record highs this year, while oil and gas prices have also risen sharply.
Georgieva said she was concerned that without the correct government support, the protests seen in Sri Lanka could be repeated in other countries.
Sri Lanka’s economic crisis, exacerbated by rising prices, has led to deadly riots, a new Prime Minister and a first ever default on its debts.
The IMF boss said such similar unrest before the pandemic, from France to Chile, was caused by “a sense of inequality growing” and decisions being made without the support of the people.