IMF Managing Director Kristalina Georgieva

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has welcomed Sri Lanka reaching the Staff-Level Agreement for a four-year support program. “Very pleased that IMF staff and Sri Lankan Government officials have reached a Staff-Level Agreement to support the country’s economic policies with a 48-month Extended Fund Facility of about $ 2.9 billion.

This is an important step forward for Sri Lanka,” said Georgieva in a tweet.

On Thursday the Government and the IMF team have reached Staff-Level Agreement to support the authorities’ economic adjustment and reform policies with a new 48-month Extended Fund Facility (EFF) with a requested access of about SDR 2.2 billion (equivalent to $ 2.9 billion).

The objectives of Sri Lanka’s new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

Debt relief from Sri Lanka’s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps. Financing assurances to restore debt sustainability from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support to Sri Lanka.

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