Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has emphasized the IMF’s unwavering support for Sri Lanka as it navigates its ambitious economic reform program. In a statement on Tuesday (26), Georgieva highlighted the Sri Lankan government’s resolve to advance its reform agenda, aiming for sustained economic growth and stability.
Progress in Debt Restructuring and Economic Recovery
The IMF Chief noted that Sri Lanka’s reform program, supported by an SDR 2.286 billion (approximately USD 3 billion) 48-month Extended Fund Facility arrangement, has already achieved significant milestones. Since its approval in March 2023, the program has contributed to economic recovery, reduced inflation, and increased foreign reserves.
Following successful completion of two reviews, IMF staff reached an agreement on the third review on November 23, 2024. Additionally, key agreements with the Official Creditors Committee (OCC) and China EXIM Bank have laid the groundwork for debt treatments consistent with the program’s objectives of restoring debt sustainability.
Significant Agreements with Creditors
Georgieva hailed the agreements reached with the Steering Committee of the Ad Hoc Group of external bondholders and the Local Consortium of Sri Lanka as a critical step forward. These terms, assessed by IMF staff as aligned with program parameters, are expected to deliver substantial debt service relief, bolstering Sri Lanka’s efforts to rebuild financial stability.
Call for Continued Support
The IMF Managing Director stressed the importance of swift completion of the debt restructuring process with strong creditor participation. She also called for collective efforts to finalize remaining agreements to ensure the success of Sri Lanka’s debt restructuring and reform program.
Partnership and Vision
Georgieva reaffirmed that international financial institutions, official creditors, and bondholders play vital roles in sustaining Sri Lanka’s progress. “The IMF remains a steadfast partner in supporting Sri Lanka and its people, standing ready to assist the country in achieving its economic and social reform goals,” she said.
This robust partnership aims to guide Sri Lanka toward sustained economic growth, macroeconomic stability, and strengthened governance.
