IMF Team to conduct second review of Sri Lanka’s EFF program in March 2024

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A team from the International Monetary Fund (IMF) is set to arrive in Sri Lanka for the second review of the Extended Fund Facility (EFF) program, which is scheduled to begin on March 07, 2024, according to State Minister of Finance Shehan Semasinghe.

The state minister expressed his belief that the second review, pertaining to the third disbursement under the extended fund facility, will span approximately two weeks.

“The second review will commence on March 07, and we are very confident that it will proceed smoother than the first review,” he told reporters during a press briefing at the Presidential Media Center on Wednesday (February 28).

He explained, “The first review occurred during the initial stages of implementing the government’s policy decisions.”

The progress in meeting key commitments under the IMF-supported program will be formally assessed during the second review of the EFF arrangement, alongside the forthcoming 2024 Article IV consultation, which evaluates Sri Lanka’s economic health.

The International Monetary Fund (IMF) had previously indicated that the second review of Sri Lanka’s $2.9 billion bailout could be completed in the first half of 2024, provided the country manages to meet debt restructuring and revenue targets outlined under the program.

In December 2023, the IMF executive board had approved the first review of Sri Lanka’s $2.9 billion bailout, releasing about $337 million in funds to help address the fallout from the country’s worst financial crisis in decades.