IMF Unlocks $347 Million for Sri Lanka's Economic Recovery

The International Monetary Fund (IMF) announced a significant development for Sri Lanka, as both parties achieved a staff-level agreement to advance the nation's economic reform program. This agreement paves the way for approximately $347 million in financing.

Pending approval from the IMF Executive Board, the latest financial package will elevate the total funding released to Sri Lanka under the $3 billion support plan to around $2.04 billion. The South Asian nation is gradually emerging from a crippling financial crisis, marked by a severe shortage of foreign currency three years ago.

IMF representatives emphasized that Sri Lanka's 2026 budget must align with the IMF program's terms to continue its financial improvement. Key measures include enhancing tax compliance, broadening the tax base, reinforcing tax exemption frameworks, and improving public financial management.