The arrangement was approved by the IMF executive board for a total amount of SDR 2.3 billion (~$3 billion) on March 20 last year.
The IMF and Sri Lanka recently reached a staff-level agreement on economic policies to conclude the third review of the country’s economic reform programme supported by the former’s four-year Extended Fund Facility arrangement.
Once the review is approved by the IMF management and completed by its executive board, Sri Lanka will have access to about $333 million in financing.
Once the review is approved by the IMF management and completed by its executive board, Sri Lanka will have access to about $333 million in financing, and that would bring the total IMF financial support disbursed under the arrangement to SDR 1,016 million ($1,333 million).
The new government’s commitment to the programme objectives has enhanced confidence and ensures policy continuity. Sustaining the reform momentum is critical to safeguarding the hard-won gains under the programme thus far and putting the economy on a path towards durable recovery and stable and inclusive growth, an IMF release noted.
An IMF team led by Peter Breuer, senior mission chief for Sri Lanka, visited Colombo from November 17 to 23 this year.
“Sri Lanka’s ambitious reform agenda supported by the EFF is delivering commendable outcomes. The economy expanded on average by 4 per cent YoY [year on year] in the four quarters ending in June 2024. High-frequency indicators point to continued expansion across all sectors,” Breuer and deputy mission chief Katsiaryna Svirydzenka said in the release:
“Average headline and core inflation remained contained at 0.8 and 3.8 per cent during the third quarter. Gross official reserves increased to $6.4 billion at end-October 2024 with sizeable foreign exchange purchases by the central bank. Public finances have strengthened following substantial fiscal reforms,” they noted.
“Programme performance was strong, with all quantitative performance criteria and indicative targets (IT) for end-June 2024 met, as well as the ITs for end-September 2024, except for the IT on social spending. Most structural benchmarks due before October-2024 were either met or implemented with delay; some benchmarks are delayed because of the election cycle,” they added.
Fibre2Fashion News Desk (DS)