IMF APPROVES $337M AID TO STABILIZE SRI LANKA'S ECONOMY

In the announcement, Peter Breuer, Senior Mission Chief for Sri Lanka, revealed that the debt restructuring with China was finalized under strict confidentiality as the International Monetary Fund (IMF) completed its initial review of the USD 2.9 billion bailout

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In a significant development, the International Monetary Fund (IMF) Executive Board has successfully completed the first review under the 48-month Extended Fund Facility with Sri Lanka. This achievement provides the cash-strapped South Asian nation with access to approximately USD 337 million, aimed at restoring macroeconomic stability and ensuring debt sustainability. Peter Breuer, Senior Mission Chief for Sri Lanka, made the announcement, highlighting that the debt restructuring negotiations with China, which holds 52 percent of Sri Lanka’s total debt, were concluded on a strictly confidential basis.

“The Chinese agreement in principle was very good news in Sri Lanka’s debt restructuring talks. We have seen a summary of the key financial terms of the agreement shared by authorities on a strictly confidential basis,” Breuer disclosed to reporters on Tuesday.