D-day for Sri Lanka as IMF Executive Board meets to decide on EFF

All eyes will be on Washington today as the Executive Board of the International Monetary Fund (IMF) meets to decide on the Extended Fund Facility (EFF) arrangement for Sri Lanka.

Peter Breuer, Senior Mission Chief for Sri Lanka, Asia and Pacific Department, IMF and Masahiro Nozaki, Mission Chief for Sri Lanka, Asia and Pacific Department, IMF are scheduled to brief the media early on Tuesday (Sri Lanka time), on the outcome of the meeting.

Earlier this month (March) Sri Lanka had received financing assurances from all major bilateral creditors.

This paved the way for consideration by the IMF’s Board today (March 20) the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility.

Approval by the Board would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank.

IMF Asia-Pacific Director Krishna Srinivasan said the arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.

The Government said it is confident the IMF Executive Board will approve the Staff Level Agreement as the country has met all the preconditions put forward by the IMF. (Colombo Gazette)