The International Monetary Fund (IMF) agreed to the third review of the Sri Lanka rescue of 2.9 billion dollars on Friday, with an additional $ 334 million to support the economic recovery in the country.
This is total payments under the program, about $ 1.3 billion.
Approval follows a secret Lanca commitment to the financial goals made by the International Monetary Fund during the first budget of President Anura Kumara Desapana. The budget includes a major surplus goal of 2.3 % of the 2025 GDP, and is compatible with the conditions of the International Monetary Fund.
In addition, Sri Lanka has ended the $ 25 billion debt restructuring with major bond holders and creditors last year, a major demand for the continued support of the International Monetary Fund.
“The performance of the program was strong, while completing all quantitative goals except for the extension goal of social spending,” said Kenji Ocamurah, Deputy Management Director of the Administrative Fund. He added that most of the structural standards due by January 2025 either were met or implemented with slight delays.
Sri Lanka obtained a plan to save the International Monetary Fund in March 2023 to stabilize its economy after a severe financial crisis in 2022, which sent inflation to 70 %, the currency to record its lowest levels, and contract with GDP by 7.3 %. The economy is 2.3 % in 2023 but is expected to grow by 5 % this year, according to Dissanayake’s budget speech.
Low inflation now, and the low value of the Sri Lankan rupee slows to 1.3 % against the US dollar.
