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IMF and Sri Lanka Reach Staff-Level Agreement on Seventh Review
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News18•05-10-2026, 18:30
IMF and Sri Lanka Reach Staff-Level Agreement on Seventh Review
- •The International Monetary Fund reached a staff-level agreement with Sri Lanka on the seventh review under its Extended Fund Facility.
- •The agreement will grant Sri Lanka access to USD 345 million, bringing total disbursements to about USD 2.7 billion out of the USD 2.9 billion bailout.
- •Sri Lanka's economy expanded by 4.2 per cent in the second quarter of 2026, marking eleven consecutive quarters of strong growth.
- •Gross official reserves increased to reach USD 6.9 billion by the end of August 2026, with banks remaining well capitalised and profitable.
- •The IMF emphasized the need for continued prudent policies, cost-recovery energy pricing, and bold structural reforms to safeguard macroeconomic stability.
Key Questions Answered
Once the seventh review is approved by the IMF Executive Board, Sri Lanka will gain access to approximately USD 345 million.
Sri Lanka faces downside risks from uncertainty over the duration and intensity of the Middle East war, global trade policy, and the effects of El Nino.
Sri Lanka's economic activity expanded by 4.2 percent in the second quarter of 2026, marking eleven consecutive quarters of strong economic growth.
