(Reuters) – The International Monetary Fund (IMF) yesterday said its executive board approved a nearly $3 billion bailout for Sri Lanka, and the country’s presidency said the program will enable it to access up to $7 billion in overall funding.
The decision will allow an immediate disbursement of about $333 million, the IMF said, and will spur financial support from other partners, potentially helping Sri Lanka emerge from its worst financial crisis in over seven decades.
IMF Managing Director Kristalina Georgieva said Sri Lanka also needs to undertake various reforms.
“For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported program with strong ownership for the reforms is critical,” Georgieva said in a statement. EFF refers to the IMF’s Extended Fund Facility.
She emphasised the need for “ambitious revenue-based fiscal consolidation.”
