Colombo, Sept. 1, (dpa/GNA) – The International Monetary Fund (IMF) has reached a preliminary agreement to provide a $2.9-billion bailout loan to Sri Lanka, the lender said on Thursday.
IMF head of delegation Peter Breuer told a press conference that IMF staff and Sri Lankan authorities had reached a staff-level agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF).
The agreement is subject to approval by IMF management and board and is contingent on Sri Lankan authorities following previously agreed measures.
The IMF also requires financing assurances from Sri Lanka’s official creditors and “making a good faith effort to reach a collaborative agreement” with private creditors, a statement from the IMF said.
“The new EFF arrangement will support Sri Lanka’s program to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka’s growth potential,” it said.
Sri Lanka turned to the IMF after the country ran into an unprecedented economic crisis resulting in shortages of fuel, gas, medicine and food, leading to social unrest and protests across the country.
Former president Gotabaya Rajapaska and former prime minister Mahinda Rajapaksa stepped down from their positions following the protests.
GNA