Sri Lanka Anticipates IMF & World Bank Spring Meetings to Unlock Vital Funding Tranche

COLOMBO (News 1st); Sri Lanka’s State Minister for Finance, Shehan Semasinghe believes that 'fruitful engagements' at the IMF & World Bank Spring Meetings in Washington DC, will pave the way for unlocking the next tranche of essential funding and a speedy debt resolution.

He said this will enhance economic stability, confidence, sustainable growth, restore debt sustainability and ultimately, improving the welfare of every Sri Lankan citizen.

In a post on X, the State Minister announced the country’s participation in the upcoming IMF & World Bank Spring Meetings 2024, scheduled to commence on April 15. 

This significant event brings together global leaders, policymakers, and financial experts to discuss critical economic challenges and foster international cooperation.

"Sri Lanka's journey to its current state of stability and progress is due to the invaluable support provided by the IMF, World Bank and international partners during the most severe economic crisis we faced since 2022. As we navigate the complexities of global economic challenges, we will engage closely with the IMF and aim to contribute to broader international economic cooperation with our partners," said Semasinghe.

In March 2024, IMF staff and the Sri Lankan authorities reached staff-level agreement on economic policies to conclude the second review of the 4-year EFF-supported program and the 2024 Article IV Consultation. 

Once the review is approved by IMF Management and completed by the IMF Executive Board, Sri Lanka will have access to SDR 254 million (about US$337 million) in financing. If approved, this will be the third tranche that will be released to Sri Lanka. 

The EFF arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR 254 million (about US$337 million), bringing the total IMF financial support disbursed under the arrangement to SDR 762 million (about US$1 billion),” said the IMF in a statement in Colombo.