The International Monetary Fund (IMF) will conduct the first review of the US$ 2.9 billion bailout to Sri Lanka from September 11-19, State Minister of Finance Ranjith Siyambalapitiya said yesterday.
Minister Siyambalapitiya said the country has successfully fulfilled the nine conditions set by the global lender.
Sri Lanka was hit by its worst economic crisis in history when the country’s foreign exchange reserves fell to a critical low. The country has to finalise its external and domestic debt restructuring by September when the IMF carries out its first review of the US$ 2.9 billion bailout granted in March this year.
The eight-day review is to happen from September 11 to 19, Minister Siyambalapitiya said. The Central Bank of Sri Lanka (CBSL) and the Ministry of Finance would be involved in the review.
“We had to fulfill nine pre-conditions which we successfully did. The arrangement is for the release of eight tranches until 2027,” the Minister said. About US$ 350 million would be made available to Sri Lanka after the September review, he said. In late June, the Government announced its domestic debt restructuring programme.
The US$ 2.9 billion IMF bailout deal was approved after pre-conditions for stringent reforms such as personal tax hikes, and increased utility charges on top of restructuring loss-making State ventures. Several key State institutions are to be privatised including national carrier SriLankan Airlines. (PTI)