2025 Budget Crucial for IMF $333 Mn Financing Approval

COLOMBO (News 1st); The International Monetary Fund (IMF) has commended Sri Lanka's ambitious reform agenda, highlighting its positive impact on the country's economy.

"Sri Lanka's economy expanded by 5.5 percent in the third quarter of 2024. Average headline and core inflation remained well below target during the fourth quarter of 2024, and international reserves increased to $6.1 billion by the end of 2024," said Julie Kozack, Director of the Communications Department at the IMF at a media briefing in Washington, DC.

Kozack also emphasized the importance of prior actions by Sri Lankan authorities, including the submission of the 2025 budget consistent with the program's parameters. The staff-level agreement reached in November is contingent upon these actions and awaits the Executive Board's approval.

"With respect to the specific question on the budget, what I can share is that the staff-level agreement that I mentioned, which was reached in November, will be presented to the Executive Board or is subject to Executive Board approval, but it's also contingent upon, among other things, implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program," she said in response to a question posed by News 1st's Zulfick Farzan.

On November 23, 2024, the International Monetary Fund (IMF) and Sri Lankan authorities reached a staff-level agreement on the Third Review of Sri Lanka's Extended Fund Facility (EFF) program.

Upon approval by the IMF's Executive Board, Sri Lanka will gain access to approximately $333 million in financing. The Board meeting to finalize the approval is expected to take place in the coming weeks.