The International Monetary Fund (IMF) has applauded the Sri Lankan authorities for the significant strides they have taken to tackle the country’s economic challenges.
The IMF Managing Director, Kristalina Georgieva, expressed her satisfaction with the progress made by the country’s policymakers in implementing decisive policy actions and securing financing assurances from major bilateral creditors, including China, India, and the Paris Club.
In a recent statement, Georgieva noted that the IMF looks forward to presenting Sri Lanka’s IMF-supported program to the Executive Board for approval on March 20.
The Extended Fund Facility (EFF) will support the authorities’ program of ambitious reforms, which is aimed at revitalizing Sri Lanka’s economy and propelling it towards a path of robust and inclusive growth.
Krishna Srinivasan, the Director of the Asia and Pacific Department of the IMF, also praised the Sri Lankan authorities for securing financing assurances from all major bilateral creditors.
According to Srinivasan, this positive development paves the way for the IMF Board’s consideration and approval of the Staff Level Agreement reached on September 1, 2022, for financing under an Extended Fund Facility. He further added that approval by the Board would stimulate financing from other creditors, including the World Bank and the Asian Development Bank.
The EFF arrangement will help Sri Lanka emerge from its current economic crisis and propel it towards sustainable economic growth. The authorities have already embarked on a program of ambitious reforms that will benefit the country in the long run.
This includes significant measures to enhance macroeconomic stability, fiscal and monetary policy frameworks, structural reforms to promote growth and create jobs, and measures to enhance financial sector resilience.