US$333 million to be released to Sri Lanka immediately
The decision by the Executive Board of the International Monetary Fund (IMF) to approve a bailout package for Sri Lanka will enable an immediate disbursement of US$333 million and catalyze financial support from other development partners, the IMF said.
The Executive Board of the IMF approved a 48 month extended arrangement under the Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion).
Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis, further aggravated by a series of external shocks.
The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential. (Colombo Gazette)