IMF releases fifth review of Sri Lanka's economic performance: Approves US$ 164.1mn disbursement

COLOMBO (News 1st) - Issuing a release, the Executive Board of the International Monetary Fund stated that it has completed the fifth review of Sri Lanka's economic performance under the Extended Fund Facility and approved USD 164.1mn disbursement to Sri Lanka. Sri Lanka’s three-year extended arrangement of US$1.5bn was approved on June 3rd, 2016. The final tranche of the loan that Sri Lanka was to receive in November 2018, was suspended due to political instability in the country. However, following the restoration of the political instability and after holding discussions with the heads of the IMF, the Extended loan facility was resumed. The Executive Board has also approved an extension of the arrangement by one additional year, with rephasing of remaining disbursements. In its statement the IMF declared that Sri Lankan authorities should renew their efforts to strengthen SOE governance and transparency, including advancing a restructuring plan for SriLankan Airlines and completing energy pricing reforms, building on important progress with the implementation of the fuel pricing formula. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair of the Board commended the government's effort in introducing the fuel price formula.