The Executive Board of the International Monetary Fund (IMF) is set to convene on February 28, 2025, to discuss and approve the third review of Sri Lanka’s Extended Fund Facility (EFF) program.
A staff-level agreement on the review was reached between IMF officials and Sri Lankan authorities on November 23, 2024. Upon approval by the IMF Executive Board, Sri Lanka will gain access to approximately USD 333 million in financing.
The IMF had previously indicated that the release of the fourth tranche of Sri Lanka’s EFF program is subject to Executive Board approval, contingent on the implementation of prior actions, including the submission of the 2025 Budget aligned with program parameters.
During the IMF’s weekly press briefing on February 6, spokesperson Julie Kozack highlighted that Sri Lanka’s reform agenda is yielding positive results. She noted that the economy expanded by 5.5% in the fourth quarter of 2024, inflation remained well below target, and international reserves increased to USD 6.1 billion by the end of 2024.
In response to a question regarding the 2025 Budget, Kozack reiterated that the IMF’s approval depends on the Sri Lankan government’s adherence to agreed-upon economic measures, including budgetary consistency with the EFF program.
The upcoming IMF Executive Board meeting follows President Anura Kumara Dissanayake’s presentation of his maiden full Budget—the 79th Budget Speech of independent Sri Lanka—before Parliament on February 17.
