The IMF Executive Board completed the third review of Sri Lanka’s Extended Fund Facility arrangement which enables the disbursement of US$ 251.4 million.
While the authorities met fiscal targets and legislated the income tax reform, further consolidation is necessary, given Sri Lanka’s high debt burden and large gross financing needs.
Further buildup of international reserves under greater exchange rate flexibility will help reduce Sri Lanka’s external vulnerability.
On December 6, 2017, the Executive Board of the International Monetary Fund (IMF) completed the third review of Sri Lanka’s economic performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF) arrangement. Completion of the review enables the disbursement of the equivalent of SDR 177.774 million (about US$ 251.4 million), bringing total disbursements under the arrangement to the equivalent of SDR 537.456 million (about US$ 759.9 million).
Sri Lanka’s three-year extended arrangement was approved on June 3, 2016, in the amount of about SDR 1.1 billion (US$1.45 billion, or 185 percent of quota in the IMF at that time of approval of the arrangement.
The government’s reform program, supported by the IMF, aims to reduce the fiscal deficit, rebuild foreign exchange reserves, and introduce a simpler, more equitable tax system to restore macroeconomic stability and promote inclusive growth.
Add new comment