Ajit Karn
The International Monetary Fund (IMF) approved a three-billion-dollar loan to Sri Lanka to help the country promptly overcome its economic crisis. According to a statement, the IMF’s Executive Board authorised a 48-month extension of the Extended Fund Facility (EFF) in the amount of 2,286 billion SDR (395 percent of quota or about 3 billion USD).
Sri Lanka has been severely impacted by a devastating economic and humanitarian crisis. In a statement approving the bailout, the IMF stated that the economy faces significant challenges stemming from pre-existing vulnerabilities and policy missteps prior to the crisis, which have been exacerbated by a succession of external shocks.
The statement added that the EFF-supported programme intends to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, protect the stability of the financial sector, and enhance governance and growth potential. The decision of the Executive Board will permit an immediate disbursement of SDR 254 million (approximately USD 333 million) and stimulate financial support from other development partners.
Notably, Sri Lanka declared its first-ever debt default in April, as the economic crisis sparked by foreign exchange shortages since the country’s 1948 independence from Britain sparked public protests.
Monday, the International Monetary Fund (IMF) announced that the IMF Executive Board had approved Sri Lanka’s Extended Fund Facility programme. (EFF). According to Sri Lanka’s President’s Media Division, the programme will enable Sri Lanka to obtain up to $7 billion in financing from the IMF, International Financial Institutions (IFIs), and multilateral organisations.
The International Monetary Fund (IMF) has announced that its Executive Board has approved Sri Lanka’s Extended Fund Facility (EFF) programme. (EFF). The programme will enable Sri Lanka to access up to $7 billion in financing from the IMF and other international financial institutions (IFIs)…
Several hours after the announcement, President Ranil Wickremesinghe of Sri Lanka thanked the International Monetary Fund. (IMF).
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“I applaud the IMF for approving Sri Lanka’s Extended Fund Facility programme. We are committed to complete transparency in our efforts to reach debt levels that are sustainable and in our reform agenda. The IMF programme is essential to attaining this vision, according to the Sri Lankan president.
