IMF Secures Staff-Level Deal to Release About $345 Million to Sri Lanka

The International Monetary Fund has reached a staff-level agreement with Sri Lanka that would unlock financing equivalent to roughly $345 million in special drawing rights, subject to approval by the IMF’s executive board and compliance with the nation’s 2027 budget, which will be presented to parliament next month. The deal also depends on a review of financing assurances that will verify contributions from multilateral partners and assess whether the country’s debt-restructuring progress meets programme requirements.

If the board signs off, total IMF disbursements to Sri Lanka will reach about $2.7 billion. The IMF noted that Sri Lanka’s recovery remains vulnerable to external shocks, including the war in the Middle East, global trade conditions, the El Niño weather pattern, and fluctuations in international energy prices. It urged the government to allow domestic fuel prices to align with global rates while safeguarding low-income households. This agreement represents another step in the island’s effort to stabilise its economy, rebuild reserves and complete its debt-restructuring process.