IMF executive Board approves fourth review of Sri Lanka’s EFF –

The Executive Board of the International Monetary Fund (IMF) has approved the Fourth Review of Sri Lanka’s Extended Fund Facility (EFF) arrangement, unlocking the next tranche of 344 million dollars. This follows a staff-level agreement reached in April this year after discussions in Colombo and during the IMF-World Bank Spring Meetings in Washington, DC. The EFF, worth 2.9 billion dollars over 48 months, was approved in March 2023 to support Sri Lanka’s economic recovery. With this disbursement, Sri Lanka’s total IMF receipts under the programme have risen to over 1.7 billion dollars. The April review had highlighted concerns that Sri Lanka’s electricity tariffs were not aligned with cost-reflective pricing, as required under the programme. In response, the government last month approved an 18.3 per cent increase in electricity tariffs to comply with the IMF’s guidelines and support fiscal discipline.