Sri Lanka’s ambitious reform agenda delivering commendable outcomes: IMF

The International Monetary Fund (IMF) says that its Executive Board’s approval for the release of the fourth tranche of Sri Lanka’s Extended Fund Facility (EFF) program is contingent upon implementation by the authorities of prior actions, including submission of the 2025 Budget that is “consistent with parameters identified under the program”.

IMF Communication Department Director and Spokesperson Julie Kozack stated that on November 23, 2024, the IMF staff and the Sri Lankan authorities reached a staff-level agreement on the Third Review of Sri Lanka’s EFF program and that once approved by the IMF’s Executive Board, Sri Lanka will have access to around USD 333 million in financing.

Furthermore, she expressed that the IMF’s Executive Board meeting is expected to take place in the coming weeks.

Kozack further emphasized that Sri Lanka’s ambitious reform agenda is delivering commendable outcomes, noting that the economy expanded by 5.5 percent in the fourth quarter of 2024. 

“Average headline and core inflation remain contained well below the target during the fourth quarter of 2024. And international reserves increased to $6.1 billion at the end of 2024”, she added.

Responding to a question raised by a journalist during the weekly press briefing, regarding Sri Lanka’s Budget 2025, the IMF Spokesperson said: 

“With respect to the specific question on the budget, what I can share is that the staff-level agreement that I mentioned, which was reached in November, will be presented to the Executive Board or is subject to Executive Board approval, but it’s also contingent upon, among other things, implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program.”