IMF strikes staff-level deal with Sri Lanka on $700 million in funding
- Sri Lanka's economic reforms have supported the recovery, the IMF added, although it has been significantly exposed to the Iran war
The International Monetary Fund said on Thursday it reached a staff-level pact with Sri Lanka following reviews of its reform programme, which stands to unlock financing of about $700 million once approved.
Sri Lanka’s economic reforms have supported the recovery, the IMF added, although it has been significantly exposed to the Iran war.
“Sri Lanka is significantly exposed to the Middle East conflict, which has heightened energy prices, disrupted a key air hub for tourists, and affected Sri Lankans working in the region,” said Evan Papageorgiou, the IMF’s mission chief.
Sri Lanka gets backing from IMF, bilateral creditors for $12.5bn bondholder debt rework
The island nation is recovering from its worst economic crisis in more than seven decades, which led to a foreign debt default in 2022 and a $2.9-billion IMF bailout program.
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