Sri Lanka's fourth IMF tranche of $3 bn to be released soon: Officials

Sri Lanka's fourth tranche of nearly $3 billion bailout facility by IMF will be materialised in the coming months, a top official of the world body has said.

The National People's Power (NPP) government has already reached a staff-level agreement with the IMF on the third review of the $3 billion extended arrangement under the EFF in November.

On Thursday, Julie Kozack, IMF spokesperson, said in Washington that the $333 million fourth tranche is expected to be released in the coming months after the IMF executive board approves it.

She said the review would focus on the full implementation of prior action under the programme.

 

Since the IMF and Sri Lanka entered the bailout in March 2022, three tranches of over $330 million have been disbursed.

On Thursday, in Colombo President Anura Kumara Dissanayake met the IMF officials to discuss Dissanayake's first full government budget for 2025.

The President's Media Division (PMD) said a comprehensive discussion regarding the progress of the Extended Fund Facility (EFF) agreed with the IMF took place on Thursday between President Disanayaka and the IMF delegation.

The details of this review are expected to be presented to the IMF's Board of Directors by the end of this month.

...discussions were held regarding the progress and the government's involvement in continuing the program moving forward, the PMD said in a statement.

Once the approval is granted by the IMF Executive Board, Sri Lanka is expected to release the fourth tranche of the extended loan, amounting to $333 million.

Sri Lanka was originally expecting the release of the fourth tranche by this month.

Dissanayake's budget presentation on February 17 is being viewed with anticipation in the backdrop of his election campaign statements on the need to revise the hard reforms in the programme.

Dissanayake's predecessor Ranil Wickremesinghe who implemented the IMF reforms became unpopular and lost the September presidential election finishing third behind Dissanayake. Sri Lanka's economic reform programme is supported by the IMF's Extended Fund Facility.