Overview

• The disbursement raises total IMF support under the Extended Fund Facility to SDR 1.27 billion (about USD 1.74 billion) since March 2023.
• Sri Lanka has tapped previous tranches to shore up depleted foreign reserves and secure debt restructuring agreements with external creditors.
• IMF-mandated measures such as tariff hikes and tax reforms have led to improved macroeconomic indicators despite widespread public hardship.
• The National People’s Power government continues to implement the IMF programme after having criticised its conditions before taking office in 2024.
• Officials say the fresh funding is vital for sustaining fiscal stability and reinforcing long-term growth objectives.