IMF, Sri Lanka Strike Staff-Level Pact on Funding of $345 Million
The deal would release about $345 million and brings the bailout closer to a total of $2.7 billion, the IMF said.
- On Monday, October 5, 2026, the International Monetary Fund reached a staff-level agreement with Sri Lanka, unlocking about $345 million from its $2.9 billion bailout program.
- This deal marks a milestone in Sri Lanka's recovery from a 2022 sovereign default on $46 billion of external debt, following the nation's 2023 rescue package.
- Approval hinges on the 2027 budget, which the government must unveil in parliament next month to satisfy IMF Executive Board requirements.
- The IMF criticized the government's decision to reinstate a $126 million diesel subsidy, urging officials to align fuel prices with international rates while protecting vulnerable households.
- Despite recording 11 consecutive quarters of expansion, the IMF noted Sri Lanka faces ongoing downside risks from uncertainty surrounding the Middle East war, global trade, and the El Nino weather phenomenon.
12 Articles
12 Articles
Sri Lanka reaches staff-level agreement with IMF on 7th review ahead of budget
Sri Lanka has reached a staff-level agreement on economic policies to conclude the seventh review under its 4-year Extended Fund Facility (EFF) with the International Monetary Fund (IMF), setting the stage for a disbursement of SDR 254 million (about US$345 million) upon Executive Board approval.
IMF reaches staff-level deal with Sri Lanka for $345 million in financing
The International Monetary Fund has agreed to a $345 million financing deal with Sri Lanka. This deal is contingent upon the upcoming 2027 budget being compliant with the programme's terms. Sri Lanka aims to restructure its debt as part of its ongoing economic recovery. Global trade conditions and energy prices remain significant concerns for the nation's economic stability.
IMF, Sri Lanka strike staff-level pact on funding of $345 million
Oct 4 : The International Monetary Fund said it reached a staff-level agreement with Sri Lanka on the seventh review under its Extended Fund Facility to unlock financing of about $345 million.• The island nation, backed by a $2.9-billion programme, is clawing its way out of a 2022 economic upheaval trigg
IMF, Sri Lanka strike staff-level pact on funding of $345 ...
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