Thursday, June 20, 2024

IMF completes Sri Lanka’s first review, allowing for disbursement of $337 mn

The Executive Board of the International Monetary Fund (IMF) has completed Sri Lanka’s first review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the South Asian country to access about $337 million to support its economic policies and reforms.

Sri Lanka’s performance under the program was satisfactory, with all but one performance criteria and all but one indicative target being met at end-June, Xinhua news agency quoted the IMF as saying in a statement late Tuesday.

Most structural benchmarks due by the end of October 2023 were either met or implemented with delay, the statement said.

The IMF said Sri Lankan authorities have made commendable progress toward restoring debt sustainability, raising revenue, rebuilding reserve buffers, reducing inflation, and safeguarding financial stability.

A strong commitment to improving governance and protecting the poor and vulnerable remains critical, the statement read.

Sustaining the reform momentum is of paramount importance in steering the country’s economy toward a sustained recovery and fostering stable, inclusive economic growth, said the IMF.

The completion of the first review allows for an immediate disbursement of about $337 million, bringing the total IMF financial support disbursed so far to about $670 million, said the IMF.

In March this year, the IMF approved a 48-month extended arrangement under EFF of about $3 billion to support Sri Lanka’s economic policies and reforms.

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