The International Monetary Fund has approved the final tranche of the recently suspended $2.6 billion loan granted in 2009.
Sri Lanka has been struggling to implement economic reforms tied to the loan, however the IMF’s board of directors said in a press release on Monday that the implementation of certain measures has put Sri Lanka on the right path.
Sri Lanka has raised rates and increased fuel prices in moves to curb imports such as oil, contain a trade gap and stem a decline in foreign-exchange reserves.
The Deputy Managing Director of the IMF Zhu Min pointed out that Sri Lanka needs to be ready to make further adjustments to economic policy.
“The adjustment measures implemented by the authorities have placed the economy on a more sustainable trajectory,”
“However, it will take time for the new monetary and exchange rate regime to become fully established, and the authorities will need to stand ready to adjust policies further to stabilize external reserves, especially if the global environment becomes less favorable,”
SL economic hopes hinging on IMF meeting (01 Apr 2012)
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