Sri Lanka and the International Monetary Fund (IMF) have arrived at a staff-level agreement on Friday, October 20, 2023. This development follows the review of Sri Lanka's US $3 billion Extended Fund Facility (EFF), potentially paving the way for access to the second tranche of the facility, estimated at US $330 million. However, this is still contingent on the approval process by the IMF's management and Executive Board.
If approved, Sri Lanka stands to receive an additional SDR 254 million. This would increase the total IMF financial support under this arrangement to SDR 508 million.
The day prior, on Thursday, Finance Minister of Sri Lanka, Shehan Semasinghe expressed optimism about securing a Staff Level agreement with the Washington-based lender for around US$338 million following various recent discussions. The first review of the loan program was conducted by an IMF team from September 14-27, scrutinizing its performance until the end of June.
This agreement is part of a broader bailout for crisis-hit Sri Lanka which commenced in March when the IMF sanctioned almost US$3 billion. A successful review would trigger a disbursement of nearly US$338 million.
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