IMF approves US167.2 million to Sri Lanka

The Executive Board of the International Monetary Fund (IMF), on Tuesday, completed its second review of Sri Lanka’s Extended Fund Facility (EFF) arrangement, which enables the disbursement of about US167.2 million dollars to the island country, a statement released by IMF said here.

The second review of Sri Lanka’s economic performance was under a three-year Extended Fund Facility (EFF) arrangement by the IMF.

Completion of the review enables the total disbursements under the arrangement to about US501.5 million dollars, the IMF said. Sri Lanka’s three-year extended arrangement was approved on June 3, 2016 in the amount of an estimated US 1.45 billion dollars or 185 percent of quota in the IMF at that time of approval of the arrangement.

The government’s reform program, supported by the IMF, aims to reduce the fiscal deficit, rebuild foreign exchange reserves, and introduce a simpler, more equitable tax system to restore macroeconomic stability and promote inclusive growth.

Following the Executive Board’s discussion of the review, Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director, said Sri Lanka’s performance under the Fund-supported program has been broadly satisfactory.

“Macroeconomic and financial conditions have been stable, despite severe weather events and global market volatility. The authorities launched fundamental income tax reform, undertook meaningful corrective actions to achieve program targets on international reserves, and remain committed to the reform program,” he said.

Going forward, the reform momentum should strengthen further with greater ownership, building on the progress made so far, the IMF said. (Newsin.asia)