By The IMF team has reached a staff-level agreement with Sri Lankan authorities regarding the second review within the framework of the economic reform program supported by a 4-year Extended Fund Facility (EFF) arrangement. Additionally, discussions for the 2024 Article IV Consultation have been concluded.
Peter Breuer, the IMF Senior Mission Chief, announced this development during a media briefing. However, the staff-level agreement is contingent upon approval from the IMF management and the IMF Executive Board in the coming period.
Breuer emphasized that the approval hinges on several factors, including the implementation of prior actions by the authorities, completion of the financing assurances review – aimed at confirming commitments from multilateral partners regarding financing contributions, and demonstrable progress in debt restructuring. This progress should instill confidence that the restructuring will be finalized promptly and align with the program’s debt targets.
US$337 million
Breuer further elaborated that upon the completion of the Executive Board review, Sri Lanka stands to gain access to SDR 254 million (approximately US$337 million), thereby increasing the total IMF financial support disbursed under the arrangement to SDR 762 million (around US$1 billion).
The EFF arrangement, initially approved by the IMF Executive Board for a total of SDR 2.3 billion (roughly US$3 billion) on March 20, 2023, reflects ongoing efforts to stabilize Sri Lanka’s economic situation and pave the way for sustainable growth.
