President Anura Kumara Dissanayake says Sri Lanka is making strong efforts to reach a staff-level agreement with the International Monetary Fund (IMF) by Thursday (9), which could unlock two funding tranches totaling around USD 700 million before the end of May.
The President noted that IMF officials are currently in Sri Lanka, with discussions ongoing, and emphasized the government’s intention to finalize the agreement locally rather than in Washington, as done previously.
He stated that securing the agreement would enable access to funds under both the fifth and sixth IMF reviews.
In addition, the President revealed that discussions with the Asian Development Bank (ADB) have resulted in an agreement for approximately USD 1.2 billion in grant support to be provided within the year.
Talks have also been held with the World Bank on further financial assistance, raising expectations of additional dollar inflows.
The President said that combined support from the IMF, ADB, and World Bank would significantly reduce the risk of a foreign exchange shortage.
Highlighting recent developments, he noted that the Central Bank purchased USD 700 million from the market during January and February, helping boost reserves to nearly USD 7 billion.
However, he cautioned that reserve accumulation has slowed in recent weeks while debt servicing obligations continue, which could lead to a temporary dip in reserves by May.
Despite this, he expressed confidence that upcoming external funding would help Sri Lanka manage pressure on its foreign reserves.
