The International Monetary Fund (IMF) has reached a staff-level agreement for the seventh tranche of financing under its Extended Fund Facility (EFF) reform program with Sri Lanka.
The tranche, of around US$345 million, will become available once the IMF’s Executive Board approves the review.
This latest release will bring total financial support disbursed under the agreement to US$2.7 billion.
Context
Following its 2022 financial crisis, Sri Lanka agreed to a four-year, US$3 billion bailout program with the IMF in 2023.
In exchange for funding under the EFF, recipient countries are expected to implement major economic policy reforms.
Sri Lanka is expected to conclude its EFF program next year.
Conditions
In its statement announcing the staff-level agreement, the IMF noted that final Executive Board approval depends on maintaining program parameters in the upcoming budget.
Sri Lanka must also complete its financing assurances review, confirm commitments from multilateral partners, and show adequate progress on debt restructuring.
IMF Mission Chief for Sri Lanka, Evan Papageorgiou, led the delegation visiting the country to conduct staff discussions.
IMF Overview
The IMF highlighted that Sri Lanka’s economy has proven "remarkably resilient" against successive shocks.
Economic activity expanded by 4.2% in 2026 Q2, marking eleven consecutive quarters of growth.
Inflation remained in single digits, and gross foreign reserves had also increased to US$6.9 billion.
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