Sri Lanka’s economy is being mobilized – IMF

Updated: 00:00 GMT, Jan 1, 1970 | Published: 09:22 GMT, Dec 10, 2016 |

Sri Lanka’s economy which is supported by appropriate monetary and fiscal policies has begun to stabilize, the International Monetary Fund (IMF) said Friday (Dec 8).

Releasing the first review under the extended arrangement under the extended fund facility, the IMF said Sri Lanka made progress in structural reforms aimed at revenue mobilization and expenditure management, albeit with some delays.

The Executive Board of the IMF on November 18, 2016, completed the first review of Sri Lanka’s economic performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF) arrangement.

Sri Lanka’s three-year extended arrangement was approved on June 3, 2016 in the amount of about SDR 1.1 billion (US$1.5 billion).

Completion of the review enables the disbursement of the second tranche of about US$162.6 million, bringing total disbursements under the arrangement to the equivalent of SDR 239.788 million (about US$ 325.1 million).

Following the Executive Board’s discussion of the review, Mr. Tao Zhang, Acting Chair and Deputy Managing Director, said Sri Lanka’s performance under the Fund-supported program has been broadly satisfactory despite challenging circumstances.