IMF approves $3bn bailout package for crisis-hit Sri Lanka
Mar 22, 2023
Washington [US], March 22: The International Monetary Fund (IMF) approved some $3 billion to support crisis-stricken Sri Lanka's policies and reforms. "Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis," the IMF said. "The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps leading up to the crisis, further aggravated by a series of external shocks." The 48-month arrangement under the Extended Fund Facility is intended to support the island state's economy and development and help to stabilise public finances again. The decision by the IMF executive board will "enable an immediate disbursement" of a first payment of around $333 million. Further payments are contingent on Sri Lankan authorities following previously agreed measures. Sri Lanka turned to the IMF after the country ran into an unprecedented economic crisis resulting in shortages of fuel, gas, medicine and food, leading to social unrest and protests across the country.