The International Monetary Fund (IMF) has completed the third review of Sri Lanka’s 48-month Extended Fund Facility (EFF) arrangement, granting the country access to Special Drawing Rights (SDR) 254 million (approximately US$334 million) to support its economic policies and reforms.
With this disbursement, total IMF financial assistance to Sri Lanka under the program has reached SDR 1.02 billion (about US$1.34 billion). The EFF arrangement, approved in March 2023, aims to restore macroeconomic stability, ensure debt sustainability, and promote growth-oriented reforms.
The IMF noted that Sri Lanka’s economic recovery is gaining momentum, citing low inflation, improved revenue collection, and growing foreign reserves. GDP growth has averaged 4.3% since the third quarter of 2023, with the economy projected to recover 40% of its losses from 2018-2023 by the end of 2024. However, the IMF stressed that sustained reform efforts are crucial for long-term stability and debt sustainability.
IMF Deputy Managing Director Kenji Okamura underscored the need for fiscal discipline, stronger governance, and the timely completion of debt restructuring agreements. He also highlighted the importance of targeted social spending, cost-recovery electricity pricing, and financial sector stability to support continued economic recovery.
