The IMF Board completed the first review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with access to SDR 254 million (about US$337 million) to support its economic policies and reforms. This brings the total IMF financial support disbursed so far to SDR 508 million (about US$670 million).
The IMF in a media release said Sri Lanka’s performance under the program was satisfactory. “All but one performance criteria and all but one indicative target were met at end-June.”
It said that most structural benchmarks due by end-October 2023 were either met or implemented with delay. “Notably, the authorities published the Governance Diagnostic Report, making Sri Lanka the first country in Asia to undergo the IMF Governance Diagnostic exercise.”
The IMF said that Sri Lanka have made commendable progress toward restoring debt sustainability, raising revenue, rebuilding reserves buffers, reducing inflation, and safeguarding financial stability. However it reiterated that strong commitment to improving governance and protecting the poor and vulnerable remains critical.
The total amount of Sri Lanka’s EFF Arrangement is SDR 2.286 billion (about US$3 billion) as of the time of program approval on March 20, 2023. The program supports Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability, and enhance growth-oriented structural reforms.
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