IMF Board Decision on Sri Lanka Expected by Early June

COLOMBO (News 1st); The International Monetary Fund expects its Executive Board to consider the Staff-Level Agreement on Sri Lanka’s program toward the end of May or early June, subject to the completion and assessment of required prior actions, according to IMF Mission Chief for Sri Lanka Evan Papageorgiou.

Speaking on the process leading up to the Board review, Papageorgiou said the IMF follows a well-defined timeline once a mission concludes. He explained that two prior actions must be satisfied before the IMF can formally take the case to its Executive Board.

Papageorgiou noted that once the IMF team returns to Washington, work will begin in close collaboration with Sri Lankan authorities to evaluate these actions. At the same time, he said, the authorities are required to undertake certain steps on their end, which are expected to materialize in the coming weeks.

He cautioned that the review process requires careful assessment, noting that IMF staff must complete detailed technical work before advancing the matter. This includes verifying information, completing internal checks, and preparing the case for consideration by the Executive Board.

“Generally speaking, this process takes between a few weeks to a couple of months,” Papageorgiou said, adding that if progress remains on track, the IMF hopes to hold a Board meeting toward the end of May or in early June.

The comments provide the clearest indication so far of the expected timeline for the next phase of Sri Lanka’s engagement with the IMF, as the country works through the remaining steps required before the program can move forward to the Executive Board stage.

On Thursday (9), IMF staff and the Sri Lankan authorities reached a staff-level agreement on economic policies to conclude the combined Fifth and Sixth Reviews of Sri Lanka’s reform program supported by the International Monetary Fund’s Extended Fund Facility (EFF).

The staff-level agreement reached between the International Monetary Fund and Sri Lankan authorities is now subject to IMF Executive Board approval, contingent on critical policy actions including the restoration of cost-recovery electricity and fuel pricing while protecting vulnerable groups, and the completion of a financing assurances review to confirm multilateral partners’ contributions and assess progress on debt restructuring.

Once the review is approved by the IMF Executive Board, Sri Lanka will gain access to approximately US$700 million in financing.