It is a formal arrangement by which IMF staff and Sri Lankan authorities agree on a $2.9-billion package that will support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF). However, even though the IMF has agreed to support Sri Lanka, the EFF is conditional on many factors. Sri Lanka must take a series of immediate measures that the Fund has deemed necessary to fix fiscal lapses and structural weaknesses — such as raising fiscal revenue, safeguarding financial stability and reducing corruption vulnerabilities. Apart from making domestic policy changes to strengthen the economy, Sri Lanka must also restructure its debt with its multiple lenders. (Read More)
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