IMF Ex. Board approves Sri Lanka’s EFF enabling financing up to 7 Billion USD

The International Monetary Fund (IMF) has announced that the IMF
Executive Board approved Sri Lanka’s program under the Extended Fund Facility (EFF). The
program will allow Sri Lanka to access financing of up to US$ 7 billion from the IMF,
International Financial Institutions (IFIs) and multilateral organizations.
This is a historic milestone for the country as the Government seeks to restore macroeconomic
stability and achieve debt sustainability. Earlier this month, Sri Lanka received IMF-compatible
financing assurances from its official creditors, including Paris Club members, India and China,
allowing the IMF to convene an Executive Board and consider Sri Lanka’s request for a loan.
The program is expected to provide much-needed policy space to drive the economy out of the
unprecedented challenges and instill confidence amongst all the stakeholders.
President Ranil Wickremesinghe welcomed the announcement:
“In the 75 years of Sri Lanka’s independence, there has never been a more critical period for our
economic future. Our official creditors have declared their support following continuous and
positive engagements over the last few months, and we are pleased that the IMF Executive
Board approved our program, enabling Sri Lanka to access up to US$ 7 billion in funding from
the IMF and IFIs. From the very start, we committed to full transparency in all our discussions
with financial institutions and with our creditors. I express my gratitude to the IMF and our
international partners for their support as we look to get the economy back on track for the long
term through prudent fiscal management and our ambitious reform agenda.
Since taking office last July, it has been my priority to stabilize Sri Lanka’s economy and
achieve sustainable levels of debt. To do so, we have taken some tough decisions, but we did so
with a commitment to widening our social safety nets, protecting the vulnerable, rooting out
corruption and ensuring we can grow an inclusive and internationally attractive economy. The
IMF program is critical to achieving this vision for our country, and we are committed to
successfully completing the IMF program and achieving debt sustainability. We will continue to
engage with all our creditors, and I encourage both our bilateral and commercial creditors to
strengthen and foster coordination in the context of our forthcoming engagement. The IMF
program will also be imperative to improving Sri Lanka’s standing in and access to international
capital markets, and it will demonstrate that Sri Lanka is once again a country attractive to
talent, investors and tourists.”