Colombo | The IMF has completed the fourth review of Sri Lanka's USD 2.9 billion bailout programme, allowing the country to draw a USD 350 million tranche from the four-year facility.

Amid the island's unprecedented economic crisis, the International Monetary Fund (IMF) in March 2023 approved a nearly USD 3 billion facility to assist Sri Lanka's “efforts to durably restore macroeconomic stability by restoring fiscal and debt sustainability.

The facility helped Sri Lanka revive its bankrupt economy by building its reserves and successfully negotiating debt restructuring with external creditors.

“The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about USD 350 million)," the global lender said in a statement.

This brings the total IMF financial support disbursed so far to SDR1.27 billion (about USD 1.74 billion).

The reforms that were imposed on the IMF's insistence have led to economic hardships, which the global lender said were a must to ensure growth and stability.

The unpopular measures led to the change of government in 2024. The current government led by the National People's Power, which had been critical of the IMF-prescribed reforms and had vowed to review them, continues to stay on course with the IMF programme.