The International Monetary Fund (IMF) team and Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the first review of the 48-month EFF-supported programme.

Sri Lanka will have access to SDR 254 million (about US$330 million) in financing once the review is approved by IMF Management and the IMF Executive Board.

“Macroeconomic policy reforms are starting to bear fruit, and the economy is showing tentative signs of stabilisation,” the IMF team said in the end-of-mission statement.

“Sustaining the reform momentum and addressing governance weaknesses and corruption vulnerabilities are critical to putting the economy on a path towards lasting recovery and stable and inclusive growth.”

However, it was noted that the completion of the review by the IMF’s Executive Board requires the implementation by the authorities of all prior actions and the completion of financing assurance reviews.

After constructive discussions with the authorities in Colombo and during the annual meetings in Marrakech, IMF Senior Mission Chief for Sri Lanka, Mr. Peter Breuer, and Deputy Mission Chief, Ms. Katsiaryna Svirydzenka, issued the following statement: