THE INTERNATIONAL MONETARY FUND (IMF) has completed the fourth review of Sri Lanka’s USD 2.9 billion bailout programme, allowing the country to access the next tranche of USD 350 million from the four-year facility.
The IMF had approved the nearly USD 3 billion bailout in March 2023 to support Sri Lanka’s efforts to restore macroeconomic stability, including fiscal and debt sustainability, during an unprecedented economic crisis.
The programme has helped Sri Lanka rebuild its foreign reserves and carry out debt restructuring negotiations with external creditors.
“The Executive Board of the International Monetary Fund (IMF) completed the fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about USD 350 million),” the IMF said in a statement.
With this latest disbursement, the total financial support provided so far under the facility stands at SDR1.27 billion (about USD 1.74 billion).
Economic reforms required under the IMF programme have resulted in widespread hardship, which the global lender has said is necessary to ensure long-term growth and stability.
The measures have been unpopular and contributed to the change of government in 2024.
The current administration, led by the National People's Power—which had earlier criticised the IMF's reform conditions and promised to review them—continues to adhere to the IMF-supported programme.
