IMF ready to offer further support to Sri Lanka as economy improves

The International Monetary Fund is ready to provide further support to Sri Lanka as its economy improves, with a review that could release about $345 million awaiting board approval.

Speaking at a press conference during IMF meetings in Bangkok on Thursday (October 15), Sonali Jain-Chandra, deputy director of the IMF’s Asia and Pacific Department, said support would depend on Sri Lanka’s wishes and what was appropriate, Reuters reported.

Jain-Chandra said the country’s overall economic conditions had improved significantly. She highlighted strong government financial performance, a largely completed debt restructuring process and progress on structural reforms, including governance.

Earlier this month, the IMF and Sri Lanka reached a staff-level agreement on the seventh review of the country’s Extended Fund Facility programme. Completion of the review would give Sri Lanka access to financing in Special Drawing Rights equivalent to about $345 million.

The IMF’s Executive Board is expected to consider the agreement in the coming weeks. Another review mission is planned before the programme ends in March, Jain-Chandra said.

She added that the IMF would remain engaged with Sri Lankan authorities beyond the agreement. Further support could include a new financing arrangement, policy advice through regular economic monitoring, or assistance to strengthen institutions and technical skills.