The International Monetary Fund (IMF) has approved a new loan tranche of $344 million for Sri Lanka under its Extended Fund Facility (EFF), following a review of the country’s economic progress and reforms.
The decision was made during the IMF Executive Board meeting on February 28, where members completed the third review of Sri Lanka’s performance under the 48-month EFF program. The approval comes as the nation continues to implement structural reforms and fiscal policies aimed at stabilizing its economy.
With this latest disbursement, the total financial assistance provided to Sri Lanka by the IMF under the EFF now stands at $1.34 billion.
The EFF program initially approved to support Sri Lanka’s economic recovery, focuses on restoring macroeconomic stability, strengthening public finances, and implementing key policy reforms to ensure long-term sustainability. The government has been working closely with the IMF to meet the necessary conditions, including improvements in fiscal discipline, revenue collection, and economic governance.
Sri Lanka has been facing economic challenges, including high inflation, external debt pressures, and currency depreciation, which led to the agreement with the IMF for financial assistance. The latest approval signifies that Sri Lanka is making progress in meeting its economic reform commitments.
The government and financial authorities are expected to continue working on further policy adjustments and structural improvements to secure additional IMF support in the coming months.
Sri Lanka’s ongoing IMF program is seen as crucial for the country’s economic recovery and global financial credibility, as it helps unlock other funding sources and reassures investors about the nation’s commitment to reforms.
