IMF approves another tranche of $350 mn for Sri Lanka

The Executive Board of the International Monetary Fund (IMF) on Tuesday approved the Fourth Review of Sri Lanka’s Extended Fund Facility (EFF) arrangement, making available a further US$350 million in financing through the IMF programme.

The decision was made as the Executive Board met to evaluate Sri Lanka’s fourth review under the Extended Fund Facility (EFF).

This brings the total IMF financial support disbursed so far to approximately $1.74 billion from a total approved of $3 billion.

Evan Papageorgiou, the IMF Mission Chief for Sri Lanka, said in a statement, “The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion). The programme supports Sri Lanka’s efforts to durably restore macroeconomic stability by (i) restoring fiscal and debt sustainability while protecting the vulnerable, (ii) safeguarding price and financial sector stability, (iii) rebuilding external buffers, (iv) strengthening governance and reducing corruption vulnerabilities, and (v) enhancing growth-oriented structural reforms.”