IMF to release next tranche of Extended Fund Facility

The International Monetary Fund yesterday said it had reached a staff-level agreement on the fifth review under Sri Lanka’s extended fund facility arrangement.

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“Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$347 million in financing,” a statement issued by the IMF said.

An IMF mission team led by Evan Papageorgiou visited Sri Lanka from September 24 to yesterday (9) to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the Extended Fund Facility (EFF) arrangement. At the end of the mission, Papageorgiou issued the following statement:

“IMF staff and the Sri Lankan authorities have reached staff-level agreement on the Fifth Review under the 4-year Extended Fund Facility (EFF) arrangement. The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.

“The staff-level agreement is subject to IMF Executive Board approval, contingent on: (i) Parliamentary approval of the 2026 Appropriation Bill in line with program parameters and (ii) the completion of the financing assurances review, to confirm multilateral partners’ financing contributions and assess adequate progress with debt restructuring.

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR 254 million (about US$347 million), bringing the total IMF financial support disbursed under the arrangement to SDR 1,524 million (about US$2.04 billion).