IMF Approves 2Nd Financial Review, Releases $330 Mn To Crisis-Hit Sri Lanka
Date
6/12/2024 4:15:08 PM
(MENAFN- IANS) Colombo, June 13 (IANS) The Executive Board of the International Monetary Fund (IMF) approved Sri Lanka's second review under the Extended Fund Facility (EFF) paving the way for the crisis-hit Indian Ocean Island to receive the third tranche of around $330 million.
"This achievement is a testament to our dedication to driving forward economic reforms and securing a prosperous future for all Sri Lankans. Onward and upward!" announcing the IMF's financial approval, Minister of Foreign Affairs Ali Sabry said in a post on social media platform X.
The third IMF tranche out of a $2.9-billion bailout package to recover from the worst-ever economic crisis since Independence followed the release of a second tranche of $337 million last December.
Gradually recovering from the crisis, Sri Lanka has been progressing toward debt sustainability, raising revenue, rebuilding its reserves, reducing inflation and safeguarding financial stability.
The IMF approved the bailout package in March 2023, a year after the 22 million people in the island nation were plunged into turmoil as it grappled with crippling shortages of essential food, fuel and medicines.
The crisis triggered massive street protests which forced the powerful President Gotabaya Rajapaksa to flee the country and topple the government.
India played a major role in Sri Lanka to secure the IMF deal as the powerful neighbour issued the required guarantees sought by the Washington-based lender.
India's Finance Ministry went on to the extent of issuing a letter to the IMF to confirm its support to Sri Lanka on the issue of debt restructuring.
Additionally, India also provided much-needed financial and humanitarian assistance of more than $4 billion.
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