Sri Lanka begins talks with IMF on EFF programme at President's Office

COLOMBO (News 1st); Sri Lanka marked the inaugural meeting for the International Monetary Fund's first review of the Extended Fund Facility programme at the President's Office on Thursday (14).

State Minister Shehan Semasinghe said that Sri Lanka is collaborating closely with the IMF team throughout this process to overcome the challenges ahead.

He noted that the government is fully committed to establishing a sustainable economy, and recognizes the importance of working closely with all multilateral institutions, development partners, and friendly nations.

"We wish to thank the IMF team for the support extended to Sri Lanka," he posted on X, formerly known as Twitter. 

State Minister Shehan Semasinghe said that the review is a significant milestone towards securing the second tranche and enhancing confidence in Sri Lanka’s economic recovery and stability.

He said that the successful completion of the first IMF review puts Sri Lanka in a strong position for economic recovery, and sets a promising pathway for growth in 2024.

The team from the International Monetary Fund (IMF) is scheduled to visit Colombo between September 13 and 27, 2023, said an IMF spokesperson earlier.

In March 2023, the IMF Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms.

The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential.

The Executive Board’s decision enabled an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners.