IMF says SL 2025 budget needs to be consistent with parameters identified under EFF program

The IMF says approval for the third tranche of $333 million in financing for Sri Lanka will be contingent upon, among other things, ‘implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program.’

‘With respect to the specific question on the budget, what I can share is that the staff-level agreement that I mentioned, which was reached in November, will be presented to the Executive Board or is subject to Executive Board approval, but it's also contingent upon, among other things, implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program,’ .Director of the Communications Department, IMF Ms. Julie Kozack said at a press briefing yesterday.

The IMF says Sri Lanka's ambitious reform agenda is delivering commendable outcomes with the e economy expanded by 5.5 percent in the fourth -- third quarter of 2024.

“Average headline and core inflation remain contained well below the target during the fourth quarter of 2024. And international reserves increased to $6.1 billion at the end of 2024,” Ms. Kozack said.

‘The IMF staff and the Sri Lankan authorities reached a staff-level agreement on the Third Review of Sri Lanka's EFF program on November 23rd.  Once approved by the IMF's Executive Board, Sri Lanka will have access to about $333 million in financing. And we expect the Board meeting to take place in the coming weeks,’ she said.

Meanwhile, President Anura Kumara Dissanayake yesterday met with an IMF delegation at the Presidential Secretariat to discuss the progress sof the EFF agreement.

He expressed optimism about the upcoming presentation to the IMF Board.