President   Ranil Wickremesinghe and visiting   Senior IMF Mission Chief for Sri Lanka   Peter Breuer in discussion at the opening meeting of the second review of the IMF-EFF programme

•  Visiting IMF delegation acknowledges the economy is starting to turn around
• IMF Mission Chief pointed out programme is showing promising signs of efficacy

In kicking off the second review under the Extended Fund Facility (EFF) programme yesterday, IMF highlighted that Sri Lanka’s economy has started to turn around with policy decisions taken under the programme translating into tangible outcomes.

In the opening meeting with President Ranil Wickremesinghe held at the Finance Ministry yesterday, Senior IMF Mission Chief for Sri Lanka Peter Breuer expressed his satisfaction at witnessing the economy starting to turn around, underscoring the significance of this progress, a media statement issued by the President Media Division (PMD) said.
According to the PMD, Breuer pointed out that the IMF programme is exhibiting “promising signs of efficacy”. 

“He commended the authorities for their unwavering commitment to the programme’s implementation, noting that such dedication is instrumental in driving positive change,” the PMD said.
Both President Wickremesinghe and the IMF team emphasised the collective efforts and collaboration that have contributed to Sri Lanka’s economic recovery.

President Wickremesinghe and the IMF team also discussed various aspects of Sri Lanka’s economic performance, focusing on fiscal stability, structural reforms, and future outlook. Their exchange of insights and strategies underscored the importance of continued collaboration and proactive measures in navigating challenges and fostering sustainable economic development.

The review is set to go on for two weeks. 

The government expects a smooth second review leading to a timely disbursement of the third tranche under the US$ 3 billion bailout package. According to State Finance Minister Shehan Semasinghe, the government fulfilled the majority of the requirements listed by the IMF. 

While Sri Lanka has not yet sealed the memorandum of understanding with the official creditors and in-principle agreements with bondholders, the government and analysts expect it not to be a major concern given the current progress towards achieving these tasks.

  The total amount of Sri Lanka’s EFF arrangement is SDR 2.286 billion (about US$ 3 billion) as of the time of the programme approval on March 20, 2023. The programme supports Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability and enhance growth-oriented structural reforms.