IMF completes third review of Sri Lanka’s economic performance

IMF completes third review of Sri Lanka’s economic performance

Written by Staff Writer

08 Dec, 2017 | 4:36 pm

The Executive Board of the International Monetary Fund has completed the third review of Sri Lanka’s economic performance.

The Executive Board of the International Monetary Fund completed the third review of Sri Lanka’s economic performance under the Extended Fund Facility (EFF) arrangement yesterday, December 07.

Completion of the review enables the disbursement of about US$ 251.4 million, bringing total disbursements under the arrangement to around about US$ 759.9 million.

Sri Lanka’s three-year extended arrangement was approved on June 3, 2016, in the amount of US$ 1.45 billion.

The IMF notes, the government’s reform programme which supported by the IMF, aims to reduce the fiscal deficit, rebuild foreign exchange reserves, and introduce a simpler, more equitable tax system to restore macroeconomic stability and promote inclusive growth.

Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director had stated “Sri Lanka’s performance under the Fund-supported programme has remained broadly on track since the second review. Macroeconomic and financial conditions have been stable, despite a series of weather-related supply shocks.”

He further stated, “The authorities remain committed to the economic reforms under the programme and have undertaken measures to improve government revenue and accumulate international reserves. Going forward, it is important to build on the progress made and accelerate reforms to further reduce fiscal and external vulnerabilities.”

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