The IMF and Sri Lanka agree to release $330 million in credit to combat economic crisis

Colombo, Oct 20 (.).- The Sri Lankan authorities and a delegation from the International Monetary Fund (IMF) reached an agreement for the release of 330 million dollars as part of the second tranche of the rescue of about 3,000 million dollars that the island nation agreed with the financial entity last March.

“The ambitious reform program is beginning to bear fruit with a rapid reduction in inflation and a rise in physical incomes from very low levels. The performance of the program at the end of June was satisfactory,” the main head of the IMF mission in Sri Lanka, Peter Breuer, explained this Friday during a virtual press conference.

The agreement, which is still subject to approval by the executive management of the IMF, will allow the island nation to access some 330 million dollars, as announced in a statement by the international organization.

This amount would raise to $660 million the money received so far by Sri Lanka since the IMF approved last March a bailout of about $3 billion that was intended to help the island nation overcome the worst economic crisis in his story.

Sri Lankan Deputy Finance Minister Shehan Semasinghe said: “The approval will allow the World Bank, the Asian Development Bank and other multilateral financial institutions to disburse the remaining payments. The agreement will improve confidence in our economy and help accelerate the resolution of the debt restructuring with international partners,” he celebrated on the social network X, (formerly Twitter (NYSE:)).

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