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 Govt Board accepted 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 acquired IMF-compatible financing assurances from its official collectors, together with Paris Membership members, India and China, permitting the IMF to convene an Govt Board and take into account Sri Lanka’s request for a mortgage. This system is predicted to offer much-needed coverage area 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 optimistic engagements over the previous couple of months, and we’re happy that the IMF Govt Board accepted 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 categorical my gratitude to the IMF and our worldwide companions for his or her assist as we glance to get the economic system again on monitor for the long run by way of prudent fiscal administration and our bold 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 powerful choices, however we did so with a dedication to widening our social security nets, defending the weak, rooting out corruption and making certain we will develop an inclusive and internationally engaging economic system. The IMF program is important to attaining this imaginative and prescient for our nation, and we’re dedicated to efficiently finishing the IMF program and attaining 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 may even be crucial to bettering Sri Lanka’s standing in and entry to worldwide capital markets, and it’ll show that Sri Lanka is as soon as once more a rustic engaging to expertise, buyers and vacationers.”
Notice to editors:
Sri Lanka reached a Workers-Stage 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 predicted to revive macroeconomic stability and debt sustainability whereas defending weak 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 Govt Board approval, the disbursement of the primary tranche underneath this program is predicted to happen within the coming days.
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President Media Division (PMD)
