The International Monetary Fund (IMF) said last night it had reached a staff-level agreement with Sri Lanka on economic policies to conclude the first review of the 48-month EFF-supported program.

IMF said  Sri Lanka will have access to SDR 254 million (about US$330 million) in financing once the review is approved by IMF Management and IMF Executive Board. It said macroeconomic policy reforms are starting to bear fruit and the economy is showing tentative signs of stabilization. Sustaining the reform momentum and addressing governance weaknesses and corruption vulnerabilities are critical to put the economy on a path towards lasting recovery and stable and inclusive growth.

The IMF said completion of the review by its Executive Board requires: (i) the implementation by the authorities of all prior actions; and (ii) the completion of financing assurances reviews.

Sri Lanka says wary of  Macro-Linked Bonds