Sri Lanka scores another economic milestone as the IMF Executive Board approves the Fourth Review of its bailout program, unlocking $336 million to aid recovery, stabilize reserves, and support key reforms. The island nation edges closer to fiscal stability, yet challenges remain.
In a significant move that signals continued international confidence, the International Monetary Fund (IMF) Executive Board has officially approved the Fourth Review of Sri Lanka’s Extended Fund Facility (EFF).
This green light will unlock a fresh disbursement of US$ 336 million (SDR 251 million), giving Sri Lanka much-needed financial momentum as it navigates ongoing economic recovery and reform efforts.
The approval is part of the broader US$ 2.9 billion bailout package initially agreed upon in March 2023. With this latest tranche, Sri Lanka’s total received support under the EFF now stands at approximately US$ 1.67 billion.
The IMF praised Sri Lanka’s progress in economic reform, notably its efforts to maintain fiscal discipline, boost government revenue, and stabilize the exchange rate. These achievements have helped restore confidence among investors and international stakeholders.
However, Sri Lanka’s economic path remains challenging. The government must continue addressing public debt restructuring, reforming state-owned enterprises, and strengthening the country’s social safety nets to ensure inclusive recovery.
The new funding is expected to enhance foreign currency reserves, cover fiscal gaps, and stimulate economic growth, making it a crucial piece in the puzzle of Sri Lanka’s long-term economic revival.
