The Central Bank is optimistic about the successful completion of the first review of the Extended Fund Facility (EFF), which will lead to the disbursement of the second installment of the US$3 billion facility from the International Monetary Fund (IMF).
Dr. Nandalal Weerasinghe, the Governor of the Central Bank, stated that the government and the Central Bank have made significant progress on the EFF, which was secured earlier this year. He expressed confidence in the completion of the first review, highlighting the successful domestic and external debt restructuring processes.
Dr. Weerasinghe made these remarks during the inauguration of the 44th National Conference of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).
The first review, conducted in September, assessed Sri Lanka's performance until the end of June.
Meanwhile, State Minister of Finance Shehan Semasinghe stated that the government is expected to reach a staff level agreement with the IMF for the second installment soon. Once approved by the IMF Executive Board, Sri Lanka will gain access to approximately US$338 million as the second disbursement. In March, the IMF Executive Board approved a 48-month EFF totaling around US$3 billion.
This approval was a significant milestone in supporting Sri Lanka's economic policies and reforms, aiming to address the economic crisis the country faced in 2022. Sri Lanka has already received an initial disbursement of about US$330 million under the EFF arrangement. With the assistance of the IMF program, Dr. Weerasinghe stated that the country's economy is already on a growth trajectory since the second half of this year.
