SRI LANKA RECEIVES IMF EXECUTIVE BOARD APPROVAL FOR THE EXTENDED FUND FACILITY (EFF) ARRANGEMENT

SRI LANKA RECEIVES IMF EXECUTIVE BOARD APPROVAL FOR THE EXTENDED FUND FACILITY (EFF) ARRANGEMENT

21 March 2023 – The Worldwide Financial Fund (IMF) has introduced that the IMF Government Board accredited Sri Lanka’s program underneath the Prolonged Fund Facility (EFF). This system will permit Sri Lanka to entry financing of as much as US$ 7 billion from the IMF, Worldwide Monetary Establishments (IFIs) and multilateral organizations.
This can be a historic milestone for the nation because the Authorities seeks to revive macroeconomic stability and obtain debt sustainability. Earlier this month, Sri Lanka obtained IMF-compatible financing assurances from its official collectors, together with Paris Membership members, India and China, permitting the IMF to convene an Government Board and contemplate Sri Lanka’s request for a mortgage. This system is anticipated to offer much-needed coverage house to drive the economic system out of the unprecedented challenges and instill confidence amongst all of the stakeholders.
President Ranil Wickremesinghe welcomed the announcement:
“Within the 75 years of Sri Lanka’s independence, there has by no means been a extra important interval for our financial future. Our official collectors have declared their assist following steady and constructive engagements over the previous couple of months, and we’re happy that the IMF Government Board accredited our program, enabling Sri Lanka to entry as much as US$ 7 billion in funding from the IMF and IFIs. From the very begin, we dedicated to full transparency in all our discussions with monetary establishments and with our collectors. I specific my gratitude to the IMF and our worldwide companions for his or her assist as we glance to get the economic system again on observe for the long run by prudent fiscal administration and our formidable reform agenda.
Since taking workplace final July, it has been my precedence to stabilize Sri Lanka’s economic system and obtain sustainable ranges of debt. To take action, we’ve got taken some robust selections, however we did so with a dedication to widening our social security nets, defending the susceptible, rooting out corruption and guaranteeing we will develop an inclusive and internationally engaging economic system. The IMF program is important to reaching this imaginative and prescient for our nation, and we’re dedicated to efficiently finishing the IMF program and reaching debt sustainability. We’ll proceed to interact with all our collectors, and I encourage each our bilateral and business collectors to strengthen and foster coordination within the context of our forthcoming engagement. The IMF program can even be crucial to enhancing Sri Lanka’s standing in and entry to worldwide capital markets, and it’ll display that Sri Lanka is as soon as once more a rustic engaging to expertise, traders and vacationers.”

Notice to editors:

Sri Lanka reached a Workers-Degree Settlement with the IMF on a four-year program supported by the Prolonged Fund Facility on 1st September 2022. This system, amounting to US$ 3bn, is anticipated to revive macroeconomic stability and debt sustainability whereas defending susceptible teams and safeguarding Sri Lanka’s monetary system. Since September, the Authorities of Sri Lanka has held official creditor conferences to replace stakeholders on the nation’s reform agenda and share info transparently in addition to participating with business collectors. Following the IMF Government Board approval, the disbursement of the primary tranche underneath this program is anticipated to happen within the coming days.
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President Media Division (PMD)