Courtesy The Daily Mirror

The International Monetary Fund (IMF) announced its Executive Board has ​completed the third review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR 254 million (about US$334 million). 

This brings the total IMF financial support disbursed to SDR 1.02 billion (about US$1.34 billion).

IMF Deputy Managing Director Kenji Okamura issued a statement saying that reforms in Sri Lanka are bearing fruit and that the economic recovery has been remarkable. Inflation remains low, revenue collection is improving, and reserves continue to accumulate. 

Economic growth has averaged 4.3 percent since growth resumed in the third quarter of 2023. By the end of 2024, Sri Lanka’s real GDP is estimated to have recovered 40 percent of its loss incurred between 2018 and 2023. The recovery is expected to continue in 2025.

” As the economy is still vulnerable, it is critical to sustain the reform momentum to ensure macroeconomic stability and debt sustainability and promote long-term inclusive growth. There is no room for policy errors,” he said.