IMF convenes special press briefing on Sri Lanka’s first review
December 13, 2023 08:19 am
The International Monetary Fund (IMF) has convened a special press briefing this morning (Dec.13) on the completion of the first review under the 48-month Extended Fund Facility (EFF) arrangement for Sri Lanka.
On Tuesday (Dec.12), the IMF’s Executive Board finalised Sri Lanka’s first review, paving the way for immediate disbursement of the much-anticipated second tranche of the bailout package which amounts to SDR 254 million (approximately USD 337 million).
This brings the total IMF financial support disbursed thus far to SDR 508 million (approximately USD 670 million).
The total amount of Sri Lanka’s EFF Arrangement is SDR 2.286 billion (USD 2.9 billion) as of the time of program approval on March 20, 2023.
Sri Lanka plunged into its worst financial crisis in seven decades last year after its foreign exchange reserves dwindled to record lows. However, since locking down the IMF bailout, the island nation has managed to partly stabilise its economy, bring down runaway inflation and rebuild currency reserves.
The EFF program supports Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability, and enhance growth-oriented structural reforms.
