International Monetary Fund delegation discuss continuation of US$ 1.5 billion EFF with Sri Lankan officials
A delegation from the International Monetary Fund (IMF) has commenced discussions with Sri Lankan officials this week in a bid to reach a staff level agreement on continuing the US$ 1.5 billion Extended Fund Facility (EFF).
The IMF delegation had arrived in Colombo last week and has already had meetings with officials from both the Central Bank of Sri Lanka and the country’s Finance Ministry.
Sri Lanka’s Finance Minister Mangala Samaraweera and Central Bank Governor Dr. Indrajit Coomaraswamy along with other top officials had reportedly participated in the meetings.
Sri Lanka’s Prime Minister Ranil Wickremesinghe is also expected to meet the delegation.
The talks were focused on exploring the possibility of resuming the EFF, which was suspended last year during a constitutional crisis.
“The Government is considering enhancing the programme and possibly expanding it to have a higher disbursement, but such a move could come with new structural goals,” a top source at the Finance Ministry has been quoted as saying to the Daily FT.
The IMF and the Government are expected to release a statement outlining the particulars of a new staff level agreement over the next few weeks.
According to reports, the IMF has disbursed over US$ 1 billion out of a US$ 1.5 billion three-year EFF loan it had agreed in 2016 and the fund transfer was to be done in six installments. The fifth installment that was suspended last year was due last November.
OSL take:
The IMF’s EFF would help consolidate Sri Lanka’s economy. If a decision is reached by the IMF to disburse the stalled fifth and sixth installments of the EFF, Sri Lanka’s economy would be further consolidated and it would help the country’s overall economic growth. Sri Lanka’s economy has been recording a continuous growth and together with its development agenda as well as the growth in several key areas like the tourism industry, the country is headed on the right, progressive path. Therefore, foreign businesses/investors could explore investment opportunities in Sri Lanka and engage in business work without harboring any doubts.
| Article Code : | VBS/AT/21022019/Z_7 |