May 14, 2019

IMF loan instalment approved: Programme extended by one year

The IMF Executive Committee had approved the fifth loan instalment to Sri Lanka yesterday, it is reported.

Accordingly, Sri Lanka is set to receive $ 164.1million as the final loan instalment.

Under a three year project, the IMF had agreed to grant Sri Lanka $ 1.5 billion on June 03rd 2016.

Although the last instalment of the loan was scheduled to be given to Sri Lanka last November, it was suspended due to the political crisis in the country at the time.

However, subsequent to talks between the IMF representatives and Sri Lankan officials last January, it was agreed to grant the final loan instalment.

In addition, the IMF Executive Committee had also agreed to extend the programme for another year until June 02, 2020.

Meanwhile, Mitsuhiro Furusawa, Deputy Managing Director of the International Monetary Fund had expressed his sadness over the recent terror attacks in the country.

He had said that the IMF was happy about measures taken by the Sri Lankan Government in the Budget 2019 to improve foreign reserves, increase financial uniformity and flexibility in exchange rates.

The IMF had also requested Sri Lanka to focus attention on restructuring Sri Lankan Airlines and implementing the regularisation of power pricing.

Mitsuhiro Furusawa had said that implementation of the fuel pricing formula was a big victory for Sri Lanka and in assistance for the measures taken by the Sri Lankan Government the IMF had decided to grant this loan instalment.