IMF reaches staff level agreement with Sri Lanka

• Sri Lanka will be able to get US $ 344 million upon its approval by Executive Board 
• It is contingent on implementation of prior actions relating to restoring electricity cost-recovery pricing

The International Monetary Fund (IMF) staff and Sri Lankan authorities have reached a staff-level agreement on the Fourth Review of Sri Lanka’s reform programme, enabling Sri Lanka to access to US$344 million, upon the Executive Board Review, a statement from it said.  

The staff-level agreement is subject to IMF Executive Board approval, contingent on: (i) the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism; and (ii) the completion of financing assurances review, which will focus on confirming multilateral partners’ committed financing contributions and adequate debt restructuring progress , IMF Mission Chief for Sri Lanka Evan Papageorgiou said after constructive discussions in Colombo and during the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington DC.  

“IMF staff and Sri Lankan authorities have reached a staff-level agreement on the Fourth Review of Sri Lanka’s reform programme supported by the IMF’s 48-month Extended Fund Facility (EFF) arrangement. The EFF was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.   

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR254 million (about US$344 million), bringing the total IMF financial support disbursed under the arrangement to SDR1,270 million (about US$1,722 million).  

“The IMF team held meetings in Washington DC with Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, and other senior officials.