Government Aims to Finalize IMF Staff - Level Agreement by Friday

The President expressed confidence that Sri Lanka would receive positive news regarding the third tranche of the IMF’s Extended Fund Facility (EFF) program this week. He further revealed that the government aims to complete ongoing debt restructuring talks with bilateral creditors and International Sovereign Bondholders by December 2024.

Highlighting the urgency of the situation, President Dissanayake said that discussions regarding debt restructuring had reached an advanced stage before his party assumed power. He noted, “The reality in front of us now is that we don’t have time to evaluate whether these agreements are beneficial or harmful, as they are the result of nearly two years of negotiations. Delaying further would hinder progress.”

To address the debt crisis, the government plans to pursue separate agreements with each bilateral creditor while advancing existing discussions with bondholders. By doing so, Sri Lanka aims to lay the groundwork for sustainable economic recovery.

The President credited recent productive meetings with IMF Senior Mission Chief Peter Breuer and the IMF delegation for the momentum in these negotiations. The delegation visited Sri Lanka soon after the parliamentary election, engaging in extensive discussions with the government.

Through these measures, the government seeks to strengthen the economy, rebuild trust with international financial institutions, and create a stable platform for future growth.