IMF says it is ready to continue supporting Sri Lanka — Channel NewsAsia

The International Monetary Fund is ready to support Sri Lanka “in any way it wishes, if appropriate,” Sonali Jain-Chandra, deputy director of the IMF’s Asia and Pacific Department, said in Bangkok, Thailand. Channel NewsAsia reports.

Seventh review of the programme

Earlier this month, the IMF reached a staff-level agreement with Sri Lankan authorities on the seventh review of the programme under the Extended Fund Facility. Once the review is completed, the country will gain access to special drawing rights equivalent to approximately $345 million.

According to Jain-Chandra, the agreement is expected to be considered by the IMF Executive Board in the coming weeks. Before the current programme ends in March, the fund also plans to conduct another mission to review its implementation.

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Assessment of the situation and further engagement

The fund’s representative said that Sri Lanka’s macroeconomic situation has improved significantly. She described the country’s fiscal performance as very strong and debt restructuring as largely complete.

According to her, Sri Lanka has also made important progress on structural issues, including governance. Beyond this agreement, the IMF will continue engaging with the country’s authorities, including through a possible new financial programme, economic policy surveillance, or capacity development.