IMF approves $3 billion lifeline for Sri Lanka to restore economic stability and growth
The International Monetary Fund (IMF) has approved a $3 billion, four-year Extended Fund Facility (EFF) arrangement for Sri Lanka. The decision comes as Sri Lanka grapples with a catastrophic economic and humanitarian crisis, exacerbated by pre-existing vulnerabilities and policy missteps.
The IMF’s press release states that the EFF-supported program aims to restore macroeconomic stability and debt sustainability in Sri Lanka while mitigating the impact on the poor and vulnerable. Additionally, the program aims to safeguard financial sector stability and strengthen governance and growth potential in the country.
The Executive Board’s decision will provide an immediate disbursement of around $333 million and encourage other development partners to offer financial support to Sri Lanka. The IMF’s move is expected to deliver stability and stimulate much-needed growth in the country