The Executive Board of the International Monetary Fund completed the first review of the 48-month Extended Fund Facility (EFF) Arrangement for Sri Lanka.
On March 20th 2023, the IMF Executive Board approved a 48-month Extended Fund Facility of about 3 billion U.S. dollars to support Sri Lanka’s economic policies and reforms.
Sri Lanka immediately received an initial disbursement of about $330 from the EFF arrangement, which was expected to catalyze new external financial including from the Asian Development Bank and the World Bank.
In October 2023, the IMF team reached a staff-level agreement with the Sri Lankan authorities on the first review under an economic reform program supported by a 48-month Extended Fund Facility (EFF) arrangement.
Upon approval by the IMF Executive Board, Sri Lanka would have access to about US$337 million, bringing the total IMF financial support disbursed under the arrangement to about US$670 million.
The Executive Board of the International Monetary Fund (IMF) completed today the first review under the 48-month Extended Fund Facility (EFF) Arrangement. The completion of the first review allows for an immediate disbursement of SDR 254 million (about US$337 million), bringing the total IMF financial support disbursed so far to SDR 508 million (about US$670 million).
The total amount of Sri Lanka’s EFF Arrangement is SDR 2.286 billion (about US$3 billion) as of the time of program approval on March 20, 2023. The program supports Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability, and enhance growth-oriented structural reforms.
Following the Executive Board discussion on Sri Lanka, Mr. Kenji Okamura, Deputy Managing Director, issued the following statement:
“Macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilization, with rapid disinflation, significant revenue-based fiscal adjustment, and reserves build-up.