HomeBreakingIMF approved the 3rd installment of Extended Fund Facility for Sri Lanka

    IMF approved the 3rd installment of Extended Fund Facility for Sri Lanka

    The Executive Board of the International Monetary Fund has completed the second review under the Extended Fund Facility approved for Sri Lanka.

    Accordingly, this gives access to the release of its third tranche of US$ 336 million.

    In its second review, the International Fund noted that Sri Lanka’s performance under the Extended Fund Facility program has strengthened.

    They also emphasize that by the end of December 2023, according to the conditions reached with the IMF, all quantitative targets have been met except for the implied target on social spending.

    The IMF also said that many structural benchmarks by the end of April 2024 were met or implemented with delay.

    However, the economy is still vulnerable and debt sustainability is still at risk.

    Sustaining reform momentum and debt restructuring efforts are critical to putting the economy on a path to sustained recovery and debt sustainability, the IMF has indicated in its second review.

    Meanwhile, Minister of State for Finance Mr. Shehan Semasinghe has expressed his gratitude to the International Monetary Fund board members, management and mission team for their support to Sri Lanka in approving the second review.

    State Minister of Finance Shehan Semasinghe states that the approval of the review is a confirmation of the continued commitment to the stability and economic growth needed to strengthen the country’s economy.

    He also expressed gratitude to the official creditors’ committee co-chaired by India, Japan and France and to China and pointed out that this approval will have a positive impact on the economy.

    He claims that this will also help to advance stronger economic policies and reforms for long-term sustainable economic growth.

    The Minister of State for Finance further states that the visionary leadership of President Ranil Wickremesinghe was able to achieve this victory, recover the economy and transform Sri Lanka into a country that follows global quality practices.

    The Minister of State further points out that he is thankful to the public, the Cabinet, the representatives and authorities who supported the government in the Parliament, who have made sacrifices for it.

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