Sri Lanka is set to receive the fourth installment of nearly $3 billion from the International Monetary Fund (IMF) in the upcoming months, according to a senior official from the organization. The National People’s Power (NPP) government has successfully negotiated a staff-level agreement with the IMF regarding the third review of the $3 billion extended arrangement under the Extended Fund Facility (EFF) in November.
On Thursday, IMF spokesperson Julie Kozack announced in Washington that the anticipated $333 million fourth tranche will be disbursed following approval from the IMF executive board. She indicated that the review will concentrate on the comprehensive execution of prior actions stipulated in the program. Since the commencement of the bailout agreement between the IMF and Sri Lanka in March 2022, three tranches totaling over $330 million have already been released.
On Thursday, President Anura Kumara Dissanayake convened with officials from the International Monetary Fund (IMF) in Colombo to deliberate on his inaugural comprehensive government budget for the year 2025. According to the President’s Media Division (PMD), an extensive dialogue took place concerning the advancements of the Extended Fund Facility (EFF) established with the IMF. The outcomes of this review are anticipated to be submitted to the IMF’s Board of Directors by the end of this month. The PMD further indicated that discussions encompassed the government’s role in the ongoing implementation of the program.
Once the IMF Executive Board grants approval, Sri Lanka is anticipated to disburse the fourth tranche of the extended loan, which totals $333 million. Initially, Sri Lanka had expected to receive this tranche within the current month. The budget presentation by Dissanayake on February 17 is being closely watched, particularly in light of his campaign remarks regarding the necessity to amend the stringent reforms outlined in the program. Dissanayake’s predecessor, Ranil Wickremesinghe, who enacted the IMF reforms, faced declining popularity and subsequently finished third in the September presidential election, trailing behind Dissanayake. The economic reform initiative in Sri Lanka is backed by the IMF’s Extended Fund Facility.
