IMF releases third tranche under the Sri Lanka bailout program
The International Monetary Fund (IMF) has disbursed the third tranche of USD 336 million from its USD 2.9 billion bailout package to Sri Lanka, even as it cautioned that the economy of the cash-strapped nation remains vulnerable and the path to debt sustainability is “knife-edged”. With the release of the third tranche amounting to USD 336 million, the total IMF financial support disbursed so far to Sri Lanka under the bailout package is about USD 1 billion, said the IMF in a statement.
Two tranches of USD 330 million each were released in March and December 2023. The third tranche under the Extended Fund Facility (EFF) arrangement was released during an executive board meeting of the International Monetary Fund held on Wednesday. The IMF noted that Sri Lanka’s economy has started recovering, inflation remains low, revenue collection is improving, and reserves continue to accumulate. However, “despite these positive developments, the economy is still vulnerable and the path to debt sustainability remains knife-edged,” it warned.
Strong reform efforts, adequate safeguards, and contingency planning help mitigate these risks, the IMF said. “To restore fiscal sustainability, sustained revenue mobilization efforts, promptly finalizing the debt restructuring in line with programme targets, and protecting social and capital spending remain critical. Advancing public financial management will help enhance fiscal discipline, and strengthening the debt management framework is also needed,” it underlined.
The EFF-supported programme aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, rebuild external buffers, safeguard financial sector stability, and strengthen governance and growth potential, the IMF said.
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Japan, S Korea. they should becomes our allies. we have to tell them there are no free meals.
Japan, S Korea. they should becomes our allies. we have to tell them there are no free meals.
Japan, S Korea. they should becomes our allies. we have to tell them there are no free meals.
we have to take these fragile economies around us with us. There is no way for our security and strategic importance. But govt should enter into treaties just like US with