The International Monetary Fund (IMF) has approved the fourth review of Sri Lanka’s $2.9 billion bailout programme, unlocking a fresh tranche of $350 million to support the island nation’s ongoing economic recovery.
This disbursement follows the IMF Executive Board’s completion of the fourth review under the 48-month Extended Fund Facility (EFF) Arrangement. According to the IMF, Sri Lanka is now eligible to draw approximately SDR 254 million (around $350 million) from the facility.
The IMF first approved the $2.9 billion bailout in March 2023 to assist Sri Lanka in addressing its worst economic crisis since independence. The programme aims to help the country restore macroeconomic stability, rebuild reserves, and ensure fiscal and debt sustainability.
Since the bailout’s approval, Sri Lanka has made progress in restructuring its external debt and stabilizing the economy, though challenges remain.
The IMF noted that continued commitment to the reform agenda is crucial for maintaining the gains made so far and ensuring long-term recovery.