ANKARA – The International Monetary Fund (IMF) has approved a US$2.9 billion (RM12.9 billion) bailout for crisis-hit Sri Lanka, according to the country’s authorities and the IMF.
“The programme will allow Sri Lanka to access financing of up to US$7 billion from the IMF, International Financial Institutions, and multilateral organisations,” Anadolu Agency quoted a statement by President Ranil Wickremesinghe’s office.
“IMF board has approved our EFF (extended fund facility). It’s been a long road but thanks to everyone’s hard work and dedication, we’re well on our way towards better days!” tweeted Sri Lankan Finance Minister Ali Sabry.
“Thank you all creditors and the president for his relentless pursuit of this vital mission!” he added.
An IMF statement said its executive board approved today “a 48‑month extended arrangement under the EFF with an amount of SDR (special drawing rights) 2.286 billion (395% of quota or about US$3 billion).”
It also said the EFF-supported programme aimed to “restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential.”
“For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported programme with strong ownership for the reforms is critical,” said IMF managing director Kristalina Georgieva in the statement.
Earlier this month, Georgieva welcomed the progress made by Sri Lankan authorities in taking decisive policy actions and “obtaining financing assurances from all their major creditors, including China, India, and the Paris Club.”
Crippled by a shortage of foreign exchange reserves after the collapse of the tourism-dependent economy, the country of 22 million defaulted on all its foreign debt in 2021.
It has been unable to pay for food, fuel, and other necessities, with a fuel shortage causing daily power outages.
Last July, Wickremesinghe was sworn in as president of the country which was grappling with its worst financial crisis. – Bernama, March 21, 2023
