The International Monetary Fund (IMF) will soon announce the dates for the third review under the Extended Fund Facility (EFF) program for Sri Lanka, according to Ms. Julie Kozack, Director of the Communications Department at the IMF. This announcement was made during a recent press briefing.
Ms. Kozack highlighted the progress made since the IMF Executive Board completed the 2024 Article IV Consultation and the second review under the EFF program on June 12, 2024. This review provided Sri Lanka with immediate access to approximately $336 million to support its economic policies and reforms. She noted that the program’s performance has been strong, with significant improvements in economic growth, inflation reduction, reserve boosting, and revenue mobilization. However, she also emphasized the importance of sustaining reform momentum due to existing vulnerabilities and uncertainties.
Currently, a high-level IMF team led by Krishna Srinivasan, Director of the Asia Pacific Department, is visiting Colombo to meet with President Dissanayake and his new economic team. The delegation is discussing the latest economic developments and reform objectives with Sri Lankan authorities. The dates for the third review will be announced once the delegation concludes its visit.
In addition, Ms. Kozack mentioned that on September 18, 2024, Sri Lanka and international bondholder representatives reached an agreement in principle, subject to confirmation by Sri Lanka’s Official Creditor Committee. This agreement marks significant progress in Sri Lanka’s debt restructuring process.
Meanwhile, in a meeting yesterday, President Anura Kumara Dissanayake engaged directly with IMF delegation included Director of the Asia Pacific Department, Krishna Srinivasan and Senior Mission Chief Dr. Peter Breuer to discuss the progress of Sri Lanka’s on-going IMF programme.
President Dissanayake reaffirmed the government’s broad agreement in principle with the objectives of the IMF programme but emphasized the importance of achieving these objectives through alternative means that relieves the burden off the people. The President stated that the government plans to provide relief to those who are struggling due to high VAT and income taxes.