Sri Lanka to receive IMF nod on March 20

• 08 Mar 2023
• 0

Sri Lanka’s bid for IMF loan facility is most likely to get the final nod when the matter comes up before the fund’s board for approval on March 20.

This paves the way for consideration by the IMF’s Board the approval of the Staff Level Agreement reached on September 1, 2022.

Sri Lanka has received financing assurances from all major bilateral creditors, which paves the way for the IMF board to consider approving the staff-level agreement reached on Sept. 1, Krishna Srinivasan, director of Asia and Pacific department of IMF, says in a statement.

Financing would be under an Extended Fund Facility of USD 2.9 billion, the approval of which would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank, fund says

“The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon helping  Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth,” Srinivasan says.

Sri Lanka has signed a Letter of Intent covering the deal with the IMF to be submitted to its Executive Board for approval, President Ranil Wickremesinghe told parliament.

“We expect Board Approval in the third or fourth week of March,” he said.

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