IMF reaches staff-level agreement with SL on second review

The IMF team reached staff-level agreement with the Sri Lankan authorities on the second review under the economic reform program supported by a 4-year Extended Fund Facility (EFF) arrangement and concluded the 2024 Article IV Consultation discussions.

Addressing the media, IMF Senior Mission Chief Peter Breuer said the staff-level agreement is subject to the approval by IMF management and the IMF Executive Board in the period ahead.

The approval will depend on the implementation by the authorities of prior actions, the completion of financing assurances review, which will focus on confirming multilateral partners’ committed financing contributions, and whether adequate progress has been made with the debt restructuring to give confidence that the restructuring will be concluded in a timely manner and in line with the program’s debt targets.

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR 254 million (about US$337 million), bringing the total IMF financial support disbursed under the arrangement to SDR 762 million (about US$1 billion),” said Breuer.

The EFF arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.