Central Bank Chief optimistic on IMF approval for second tranche next month

Saturday, 25 November 2023 00:28 –      – 41

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  • Says significant progress made and expects financial assurances to complete first review 
  • Focuses on obtaining assurances from official bilateral creditors, including the Official Creditor Committee
  • Reveals IMF budget support will contribute to Government’s Budgetary financing starting from Dec. 

The Central Bank Governor Dr. Nandalal Weerasinghe yesterday expressed confidence that Sri Lanka is poised to receive approval from the International Monetary Fund (IMF) for the second tranche of the $ 2.9 billion Extended Fund Facility (EFF) next month.

“We are making good progress. I am confident that we will get the financial assurances we need to complete the first review of the IMF in the next month,” he said at the post-monetary policy review meeting media briefing.

The IMF Executive Board is scheduled to meet on 6 December for the first review of Sri Lanka’s EFF arrangement. The pending IMF approval marks a crucial step in the country’s ongoing financial recovery efforts. Sri Lanka is expecting around $ 330 million as the second tranche of the $ 2.9 billion 4-year bailout. In March, the Government received the first tranche to support economic policies and reforms.

Highlighting the positive trajectory of Sri Lanka with the EFF, he stressed the importance of securing assurances from official bilateral creditors, including the Official Creditor Committee.

”We will get assurances from all creditors soon,” he expressed optimism, noting that they also anticipate additional financial support from the World Bank and the Asian Development Bank (ADB).

Further, Dr. Weerasinghe disclosed that the IMF budget support would contribute to the Government’s budgetary financing from December onwards.