In an official statement released today, the International Monetary Fund (IMF) announced that its Executive Board has approved a 48-month extended arrangement under the Extended Fund Facility (EFF) for Sri Lanka. The arrangement amounts to SDR 2.286 billion (395 percent of quota or about US$3 billion).
Sri Lanka has been facing significant economic challenges due to pre-existing vulnerabilities and policy missteps, which have been further aggravated by external shocks. The EFF-supported program aims to restore macroeconomic stability and debt sustainability in the country while mitigating the economic impact on the poor and vulnerable.
The program also seeks to safeguard financial sector stability and strengthen governance and growth potential. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners.
The IMF noted in its statement that Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The EFF-supported program is designed to address these challenges and help restore stability in the country.