Sri Lanka gets fourth tranche of bailout package from IMF for economic recovery. Sri Lanka was hit hard by a catastrophic economic and humanitarian crisis in 2022. The economy faced significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis. In 2023, the IMF approved a 48-month extended arrangement under the EFF of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms. This brings the total IMF financial support disbursed so far to SDR 1.02 billion ( about US$1.34 billion) \”Reforms in Sri Lanka are bearing fruit and the economic recovery has been remarkable,\” said Kenji Okamura, IMF Deputy Managing Director, following the discussions. \”The recovery is expected to continue in 2025,\” said Okamura. The progress to advance the debt restructuring to restore Sri Lanka’s debt sustainability is noteworthy, he added. The recent successful completion of the bond exchange is a major milestone towards restoring debt sustainability.
