IMF Executive Board Approves US$3 Billion Under the Extended Fund Facility (EFF) Arrangement for Sri Lanka
FOR IMMEDIATE RELEASE
Washington, DC – March 20, 2023: The Executive Board of the International Monetary Fund (IMF) approved today a 48?month extended arrangement under the Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion).
Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis, further aggravated by a series of external shocks.
The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners.
Sri Lanka: Selected Economic Indicators 2019- 2028 1/
| 2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 | 2026 | ||
|
Act. |
Prel. | Proj. | |||||||
| GDP and inflation (in percent) | |||||||||
| Real GDP growth | -0.2 |
-3.5 |
3.3 |
-8.7 |
-3.0 |
1.5 |
2.6 | 3.0 | |
| Inflation (average) 2/ |
4.3 |
4.6 |
6.0 |
46.4 |
28.5 |
8.7 |
5.6 | 5.2 | |
| Inflation (end-of-period) 2/ |
4.8 |
4.2 |
12.1 |
57.2 |
15.2 |
6.7 |
5.6 | 5.2 | |
| GDP Deflator growth |
3.9 |
3.1 |
8.1 |
46.6 |
30.0 |
10.7 |
5.6 | 5.2 | |
| Nominal GDP growth |
3.6 |
-0.4 |
11.7 |
33.9 |
26.0 |
12.3 |
8.3 | 8.4 | |
| Savings and investment (in percent of GDP) | |||||||||
| National savings | 32.0 |
32.3 |
31.5 |
24.8 |
26.4 |
28.0 |
28.9 | 29.3 | |
| Government | -2.5 |
-8.2 |
-7.3 |
-6.7 |
-4.4 |
-2.0 |
-0.6 | -0.4 | |
| Private | 34.6 |
40.5 |
38.8 |
31.5 |
30.9 |
30.0 |
29.5 | 29.7 | |
| National Investment | 34.1 |
33.7 |
35.3 |
26.8 |
28.0 |
29.4 |
30.3 | 30.7 | |
| Government |
6.6 |
6.4 |
7.0 |
5.2 |
4.5 |
5.0 |
5.0 | 5.0 | |
| Private | 27.5 |
27.3 |
28.2 |
21.5 |
23.5 |
24.5 |
25.3 | 25.7 | |
| Savings-Investment balance | -2.1 |
-1.4 |
-3.8 |
-1.9 |
-1.6 |
-1.4 |
-1.4 | -1.4 | |
| Government | -9.2 |
-14.6 |
-14.3 |
-11.9 |
-9.0 |
-7.0 |
-5.6 | -5.4 | |
| Private |
7.1 |
13.2 |
10.5 |
9.9 |
7.4 |
5.6 |
4.2 | 4.0 | |
| Public finances (in percent of GDP) | |||||||||
| Revenue and grants | 11.9 |
8.7 |
8.3 |
8.5 |
11.0 |
13.3 |
14.9 | 15.0 | |
| Expenditure | 19.5 |
20.7 |
19.9 |
18.9 |
19.0 |
19.7 |
19.9 | 19.9 | |
| Primary balance | -1.9 |
-5.9 |
-5.7 |
-3.8 |
-0.7 |
0.8 |
2.3 | 2.3 | |
| Central government balance | -7.5 |
-12.1 |
-11.6 |
-10.4 |
-8.0 |
-6.4 |
-5.0 | -4.8 | |
| Central government gross financing needs | 21.7 |
26.1 |
31.0 |
34.5 |
26.6 |
17.9 |
15.4 | 15.9 | |
| Central government debt | 82.6 |
95.7 |
102.2 |
117.7 |
100.0 |
101.6 |
103.3 | 102.2 | |
| Public debt 3/ | 89.0 |
104.0 |
114.3 |
128.1 |
111.2 |
108.5 |
107.8 | 106.8 | |
| Money and credit (percent change, end of period) | |||||||||
| Reserve money | -3.0 |
3.4 |
35.4 |
3.3 |
23.5 |
11.2 |
7.3 | 8.4 | |
| Broad money |
7.0 |
23.4 |
13.2 |
15.5 |
22.6 |
11.2 |
7.3 | 8.4 | |
| Domestic credit |
6.5 |
24.6 |
19.5 |
18.8 |
11.4 |
3.2 |
1.5 | 2.5 | |
| Credit to private sector |
4.2 |
6.5 |
13.1 |
6.4 |
11.2 |
8.1 |
8.6 | 9.2 | |
| Credit to private sector (adjusted for inflation) | -0.1 |
1.9 |
7.2 |
-40.0 |
-17.3 |
-0.6 |
3.1 | 4.0 | |
| Credit to central government and public corporations | 10.4 |
53.6 |
26.5 |
31.1 |
11.5 |
-0.8 |
-4.7 | -4.2 | |
| Balance of payments (in millions of U.S. dollars) | |||||||||
| Exports |
11,940 |
10,048 |
12,499 |
13,106 |
13,666 |
14,517 |
15,270 | 16,065 | |
| Imports |
-19,937 |
-16,055 |
-20,638 |
-18,291 |
-20,597 |
-21,479 |
-22,506 | -23,794 | |
| Current account balance |
-1,844 |
-1,187 |
-3,343 |
-1,458 |
-1,184 |
-1,092 |
-1,077 | -1,124 | |
| Current account balance (in percent of GDP) | -2.1 |
-1.4 |
-3.8 |
-1.9 |
-1.6 |
-1.4 |
-1.4 | -1.4 | |
| Current account balance net of interest (in percent of GDP) | -0.2 |
0.5 |
-2.2 |
-0.5 |
0.2 |
0.9 |
1.1 | 0.8 | |
| Export value growth (percent) |
0.4 |
-15.9 |
24.4 |
4.9 |
4.3 |
6.2 |
5.2 | 5.2 | |
| Import value growth (percent) | -10.3 |
-19.5 |
28.5 |
-11.4 |
12.6 |
4.3 |
4.8 | 5.7 | |
| Gross official reserves (end of period) | |||||||||
| In millions of U.S. dollars |
7,642 |
5,664 |
3,139 |
1,898 |
4,431 |
6,128 |
8,520 | 10,888 | |
| In months of prospective imports of goods & services |
5.0 |
3.2 |
1.9 |
1.0 |
2.2 |
3.0 |
3.9 | 4.8 | |
| In percent of ARA composite metric | 61.6 |
45.8 |
24.5 |
16.3 |
36.1 |
48.7 |
65.5 | 80.7 | |
| Usable Gross official reserves (end of period) 4/ | |||||||||
| In millions of U.S. dollars |
7,642 |
5,664 |
1,565 |
462 |
2,995 |
4,692 |
8,520 | 10,888 | |
| In months of prospective imports of goods & services |
5.0 |
3.2 |
1.0 |
0.2 |
1.5 |
2.3 |
3.9 | 4.8 | |
| In percent of ARA composite metric | 61.6 |
45.8 |
12.2 |
4.0 |
24.4 |
37.3 |
65.5 | 80.7 | |
| External debt (public and private) | |||||||||
| In billions of U.S. dollars | 54.6 |
53.4 |
57.3 |
58.7 |
56.2 |
58.3 |
61.1 | 63.9 | |
| As a percent of GDP | 61.4 |
62.6 |
64.4 |
78.0 |
74.7 |
76.7 |
78.0 | 78.6 | |
| Sources: Data provided by the Sri Lankan authorities; and IMF staff estimates.
1/ This table is based on data as of March 6. 2/ Colombo CPI. 3/ Comprising central government debt, publicly guaranteed debt, and CBSL external liabilities (i.e., Fund credit outstanding and international currency swap 4/ Excluding PBOC swap ($1.4bn in 2022) which becomes usable once GIR rise above 3 months of previous year’s import cover |
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