IMF approves USD 3 billion in financial assistance for debt-ridden Sri Lanka

Washington/Colombo, March 21

The IMF has approved a USD 3 billion bailout programme to help debt-ridden Sri Lanka overcome its economic crisis and catalyse financial support from other development partners, a move welcomed by Colombo on Tuesday as a “historic milestone” in the critical period.

International Monetary Fund’s Executive Board approved on Monday a 48-month extended arrangement under its Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (about USD 3 billion), according to a statement.

Special Drawing Rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).

Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis.

The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead-up to the crisis, further aggravated by a series of external shocks, the IMF said.