The International Monetary Fund says it is confident that Sri Lanka will receive further support from bilateral and multilateral organizations in addition to the US$2.9 billion through the 48-month arrangement under the Extended Fund Facility.
The IMF and Sri Lanka today reached a staff-level agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about US$2.9 billion.
The agreement was reached following talks in Colombo between Sri Lankan authorities and an IMF team headed by Peter Breuer and Masahiro Nozaki.
Speaking during a media briefing this morning at the Central Bank of Sri Lanka, IMF mission head Masahiro Nozaki said based on his previous experiences, he is of the view that Sri Lanka will receive further support from other organizations.
Masahiro Nozaki noted that the first disbursement of the IMF will be ready after the review and the approval of the Executive Board.
Meanwhile, the IMF Mission in Colombo also encouraged Sri Lanka to promptly hold a conference with the participation of creditors to discuss matters related to debt restructuring since Sri Lanka’s debt is currently assessed as unsustainable.
Meanwhile, IMF mission chief Peter Breuer noted that he is hopeful that the political stability which Sri Lanka has achieved since their last visit to Colombo in June, will continue in order to carry out reforms.
The IMF after reaching the staff-level agreement said the objectives of Sri Lanka’s new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.
Meanwhile, the IMF mission which arrived in the island on the 24th of August is expected to conclude the visit today.