Sri Lanka optimistic as IMF board meets for second review today

Sri Lanka’s State Minister of Finance Shehan Semasinghe says today (June 12) marks a significant milestone for Sri Lanka’s economy as the International Monetary Fund’s executive board is scheduled to discuss the second review of the Extended Fund Facility (EFF) and Article IV consultation.

In a post on ‘X’ (formerly Twitter), Semasinghe expressed that the government remains optimistic that international partners will continue to support Sri Lanka’s efforts. 

He further highlighted that a favorable outcome from the review is expected to unlock the third tranche of approximately USD 330 million, which would further enhance confidence in our ongoing economic reforms and growth. 

“Further, we are in the final steps of finalizing the debt restructuring agreements, with continued support from our bilateral partners”, he added.

The Article IV Consultation and second review under the Extended Fund Facility (EFF) for Sri Lanka are on the International Monetary Fund’s (IMF) Executive Board meeting agenda for June 12, as confirmed by Julie Kozack, the Director of the IMF Communications Department. 

During a press briefing on Thursday (06), Kozack affirmed that there is a strong expectation that Sri Lanka will soon reach agreements with external commercial creditors consistent with program parameters.

On March 21, IMF staff and the Sri Lankan authorities reached staff-level agreement on economic policies to conclude the second review of the economic reform program and also the 2024 Article IV Consultation.