COLOMBO (News 1st) – Sri Lanka reached a Staff-Level Agreement with the IMF on a four-year program supported by the Extended Fund Facility on 1st September 2022.
The program, amounting to USD 2.9 bn, is expected to restore macroeconomic stability and debt sustainability while protecting the vulnerable and safeguarding Sri Lanka’s financial system.
This agreement remains subject to IMF Executive Board approval.The IMF program has been centred around Sri Lanka’s ambitious reform program.
The government’s reform agenda is based on four pillars: 1. The first pillar is fiscal reform. The program foresees the implementation of ambitious revenue-based fiscal consolidation measures, combined with revenue administration reforms and the introduction of fuel and electricity pricing mechanisms to minimize fiscal risks stemming from SOEs.