Sri Lanka to outline IMF deal during IMF and World Bank annual meeting

NEW DELHI: Sri Lanka is set to have a detailed discussion with the IMF on the framework of a $2.9 billion bailout programme in Washington from October during the lender's annual meetings, Sri Lanka’s cabinet spokesperson said on Tuesday.

Minister Vijitha Herath informed reporters that the delegation to the meetings would be carried by the country's central bank governor, treasury secretary and financial advisers to new president Anura Kumara Dissanayake.
Dissanayake stated that Sri Lanka will be immediately engaging with the International Monetary Fund (IMF) for the third review of its bailout program, and approval of this review will result in the disbursement of a fourth tranche totaling approximately $337 million.

The IMF team will be in Colombo for a three-day visit starting from Wednesday to meet Dissanayake and his team to explore latest economic developments and reforms under Sri Lanka's economic programme supported by the IMF, a spokesperson for the lender said.

"We are of the view that an evaluation needs to be conducted on the IMF programme but that will not be done with the delegation visiting this week," Herath said, adding that the IMF delegation was making a "courtesy call" this week.

The IMF and the World Bank annual meetings for 2024 are scheduled for October 21-26.

Millions of the debt-ridden island nation voted for leftist leader Dissanayake in the Sri Lanka presidential election in September. This was the first election since its economy buckled in 2022.

Investors are worried that Dissanayake's desire to revisit IMF terms of bailout could delay future disbursements, however, the new president last week said that the programme would move forward under his administration.
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