According to Papageorgiou, the agreement marks another key milestone in Sri Lanka’s ongoing economic recovery programme. The EFF arrangement, which was approved by the IMF Executive Board on March 20, 2023, provides financial support amounting to SDR 2.3 billion (approximately US$3 billion) to help stabilize the country’s economy and restore fiscal and external sustainability.
The staff-level agreement is subject to approval by the IMF’s Executive Board, following which Sri Lanka will be eligible to receive the next tranche of financial assistance under the programme.
The IMF mission team commended the government’s continued efforts in implementing economic reforms, including measures aimed at strengthening public finances, restructuring debt, and improving governance. The agreement follows earlier successful reviews that highlighted progress in stabilizing inflation, rebuilding reserves, and enhancing revenue collection.
