WASHINGTON (AFP) – Sri Lanka’s president received a boost from Washington, with the International Monetary Fund (IMF) greenlighting a roughly USD330 million payout under an existing loan agreement.
The IMF board approved the latest review of an existing four-year loan agreement, noting in a statement that Sri Lanka’s programme performance “has been strong”, and that almost all quantitative targets had been met.
The board’s approval gives Sri Lanka “immediate access” to around USD334 million to support its economic policies and reform programme, the IMF said, and follows an earlier staff level agreement struck with the Sri Lankan authorities.
“Reforms in Sri Lanka are bearing fruit and the economic recovery has been remarkable,” IMF deputy managing director Kenji Okamura said in a statement.
“Inflation remains low, revenue collection is improving, and reserves continue to accumulate,” he said, adding that the IMF expects Sri Lanka’s real gross domestic product to have recovered “40 per cent of its loss incurred between 2018 and 2023”.
