IMF approves second review of Sri Lanka’s bailout package - FM
June 12, 2024 11:40 pm
The Executive Board of the International Monetary Fund (IMF) has approved Sri Lanka’s second review under the Extended Fund Facility (EFF) programme, paving the way for the country to receive the third tranche of around USD 330 million, Sri Lanka’s Foreign Minister Ali Sabry said.
“IMF’s approved the 2nd review of Sri Lanka’s program. This achievement is a testament to our dedication to driving forward economic reforms and securing a prosperous future for all Sri Lankans,” he posted on ‘X’ (formerly Twitter).
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 today (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.
Meanwhile, Sri Lanka’s State Minister of Finance Shehan Semasinghe said 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’, 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 Central Bank of Sri Lanka (CBSL) has also expressed confidence that the International Monetary Fund (IMF) will approve the release of the third tranche under the Extended Fund Facility (EFF) programme today (12).
Commenting regarding the matter, Assistant Governor of the CBSL Dr. Chandranath Amarasekara said: ““we hope IMF will announce releasing of the third tranche to Sri Lanka under the EFF programme this evening”.
Dr. Amarasekara made this remark while speaking during an event held to brief heads of media on progress of economic reforms in the Department of Government Information (DGI) this morning (12).
