Colombo, Mar 29 (UNI) While Sri Lanka's economic reforms are beginning to yield positive results, the country's economy remains vulnerable, so it is essential to maintain reform momentum to ensure lasting macroeconomic stability and debt sustainability, IMF spokesperson Julie Kozack said during the Fund's weekly press briefing in Washington on Thursday.
Noting the IMF executive board completed the third review under Sri Lanka's Extended Fund Facility (EFF) arrangement on Feb. 28, Kozack said that this approval unlocked an immediate disbursement of 334 million U.S. dollars to support the country's ongoing economic policies and reform agenda.
"With this disbursement, total IMF financial support to Sri Lanka now stands at 1.34 billion dollars," she said.
The IMF approved the 48-month EFF program for Sri Lanka in March 2023, amounting to approximately 3 billion dollars, aimed at supporting the country's reform and recovery efforts.
Kozack also highlighted several encouraging economic indicators for Sri Lanka, including low inflation and improving fiscal revenue collection. After two years of contraction, the economy grew by 5 percent in 2024, she said.
"We expect this recovery to continue into 2025. These are all very positive developments for Sri Lanka and its people," she added.
UNI XINHUA GNK