Sri Lanka to receive $246.7M in May from IMF

<p>Sri Lanka is to receive the six tranche of its International Monetary Fund (IMF) loan, worth US $ 246.7 million provided it meets IMF conditions, including allowing for exchange rate flexibility without using up foreign reserves.</p> <p>The IMF's deputy division chief for Asia-Pacific,&nbsp;Manuela Goretti acknowledged efforts by Sri Lanka “to bring their economic reform program back on track following the political turmoil of late 2018”.</p> <p>“The economy is gradually stabilising after the weak economic performance in 2018, in the context of external shocks and domestic political uncertainty,” Goretti said.&nbsp;</p> <p>The IMF is also pushing for more prudent spending by Colombo and reforms of the country's several state owned enterprises.&nbsp;</p> <p>The IMF programme is crucial for Sri Lanka to continue ensure favourable borrowing terms. However the fund delayed discussions on the sixth tranche of a three-year loan in November following the country’s plunge into a political crisis over the Sri Lankan president’s attempt to replace the prime minister.</p> <p>Earlier this week Sri Lanka&nbsp;had asked the IMF to extend a $1.5 billion loan by another year.&nbsp;</p> <p>The granting of the tranche was postponed last year following weeks of political crisis after the president sacked the prime minister and dissolved parliament.&nbsp;</p> <p>The IMD disbursed US $1 billion of the $ 1.5 billion three year EFF loan that was agreed in 2016.&nbsp;</p> <p>In the wake of Sri Lanka’s political turmoil, several major international agencies downgraded the government’s credit rating, in what was seen as a blow to the island’s economy.&nbsp;</p> <p>&nbsp;</p>