IMF and Sri Lanka Reach Staff-Level Agreement on Fourth Review

The International Monetary Fund (IMF) announced today that its staff and the Sri Lankan authorities have reached a staff-level agreement on the economic policies needed to complete the Fourth Review under the country’s reform program, which is supported by the IMF’s Extended Fund Facility (EFF).

The agreement marks a significant milestone in Sri Lanka’s ongoing efforts to stabilize its economy and implement structural reforms aimed at restoring macroeconomic stability and fostering sustainable growth.

Pending approval by the IMF Executive Board, Sri Lanka will gain access to approximately US$344 million in financial support. This disbursement will bring the total IMF financing under the program to a substantial level, reinforcing the country’s foreign reserves and supporting key reforms.

“The agreement reflects the progress Sri Lanka has made in restoring fiscal discipline, strengthening monetary policy, and advancing structural reforms,” the IMF stated. “Continued commitment to the reform agenda remains critical to ensuring long-term economic recovery.”

The EFF arrangement, approved in March 2023, aims to support Sri Lanka through its economic crisis by providing financial assistance, policy advice, and technical support. The program includes reforms across public finance, governance, anti-corruption efforts, and growth-enhancing initiatives.