The first review of the 48-month Extended Fund Facility (EFF) arrangement approved for Sri Lanka is scheduled to be considered by the Executive Board of the International Monetary Fund (IMF) today (Dec 12).
Sri Lanka has received its first tranche and Sri Lanka expects approval for the second tranche after this review.
Accordingly, the first review of Sri Lanka’s extended economic program under the EFF, the request to waive non-compliance with the performance criteria, the request to change the performance criteria, the review of financial guarantees and the withdrawal of access are scheduled to be considered today.
Last year, Sri Lanka secured a US$2.9 billion loan facility from the International Monetary Fund after its foreign exchange reserves fell to a record low, plunging it into its worst financial crisis in seven decades.
This money is received in installments and in the meantime, the fund closely observes, makes recommendations and reviews the way the money is used, the program to restore the country’s economy, how it works. The next approved tranche will be received only by fulfilling all the conditions related to the above. For this, the Sri Lankan government must also provide the facts of increasing the state income and showing political stability.
The Sri Lankan authorities had expressed confidence that the second installment of the International Monetary Fund would be received.
