In a significant meeting, the Executive Director of the International Monetary Fund (IMF), Mr. Krishnamurthy Subramanian, met with Sri Lanka’s Prime Minister, Mr. Dinesh Gunawardena, at Temple Trees. During the meeting, discussions centered around the progress of the agreed economic program, with Dr. Subramanian seeking guidance from the Prime Minister regarding necessary support for the government’s medium-term and long-term economic plans.
The Prime Minister provided a detailed overview of the current measures undertaken by the Sri Lankan government. Specifically, he highlighted the progress of the welfare scheme, which directly deposits financial assistance into the bank accounts of low-income sections of society, indicating the government’s commitment to social welfare initiatives.
It was revealed that the staff of the IMF recently gave approval for the disbursement of the second tranche of the extended credit facility, and the process now awaits approval from the Executive Board of the IMF. Upon approval, Sri Lanka is set to receive the second installment, totaling 330 million US dollars. This additional funding will bolster the country’s financial resources, with the IMF’s total approved amount for Sri Lanka standing at 3 billion US dollars.
The disbursement of funds by the IMF plays a crucial role in stabilizing Sri Lanka’s economy and increasing the government’s income. This funding acts as a guarantee, enabling the country to secure loans from other nations and international financial institutions. Sri Lanka’s successful negotiation and approval for this tranche signify a positive step toward economic stability and growth.
