The International Monetary Fund (IMF) has announced that the third review of Sri Lanka’s Extended Fund Facility (EFF), under which two tranches have already been disbursed, will take place after the upcoming presidential election.
IMF spokesperson Julie Kozack made this statement on the 12th during a press briefing in response to a question posed by a journalist.
Kozack emphasized that Sri Lanka has already achieved several milestones as it recovers from a severe economic crisis but is still not entirely out of danger. She added that it is important to safeguard these achievements, and the decision on Sri Lanka’s future should be made by the Sri Lankan people in the upcoming election.
She further explained that the aim of the IMF program is to help Sri Lanka emerge from one of the worst economic crises in its history.
A journalist then asked Kozack about claims made by opposition candidates, suggesting that the debt restructuring process or the debt sustainability review would be reconsidered after discussions.
Responding to this, Kozack clarified that debt restructuring discussions are conducted between the debtor country and its creditors, and the IMF does not participate in those discussions. However, she stated that the IMF maintains a neutral stance regarding the opposition’s views on the debt sustainability review.
“The decision of what should happen in the upcoming presidential election lies with the people of Sri Lanka,” Kozack said. “The IMF’s position is that Sri Lanka has made significant progress under the current program, but it is crucial to protect these gains to enable the country to fully recover from its severe crisis. The timing of the third review will be discussed with the government after the election. Therefore, we are ready to move forward with the program discussions after the election, based on the results of the people’s decision and the establishment of a new government.”
