The International Monetary Fund (IMF) said it completed its fourth review of the $2.9 billion bailout programme to Sri Lanka that forms a part of the larger 48-month Extended Fund Facility (EFF) arrangement.
This allows the country to draw $350 million tranche from the four-year facility. With the completion of the executive board review, Sri Lanka will have received a total of about $1.74 billion in total so far.
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The island country had plunged into a severe economic crisis as a result of corrupt governance, resulting in it seeking help from the international monetary body. In March 2023, the IMF had approved a nearly $3 billion facility to assist Sri Lanka’s efforts to restore macroeconomic stability by restoring fiscal and debt sustainability.
The amount was crucial in helping the country revive its bankrupt economy by building its reserves and successfully negotiating debt restructuring with external creditors.
The IMF’s support is contingent on Sri Lanka continuing to implement economic reforms, including measures to restore debt sustainability, raise revenue, rebuild reserves, reduce inflation, and safeguard financial stability.
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