Khartoum:The International Monetary Fund (IMF) and Sri Lankan authorities have achieved a staff-level agreement on the Seventh Review under the country’s four-year Extended Fund Facility (EFF) arrangement. This agreement also concludes discussions under the 2026 Article IV Consultation.

According to News.LK, the agreement is pending approval by the IMF Executive Board. Once approved, Sri Lanka is expected to receive SDR 254 million, which is approximately US$345 million. This disbursement would increase the total IMF financial support under the current EFF arrangement to around US$2.7 billion.

Sri Lanka’s economy has demonstrated resilience, expanding by 4.2% in the second quarter of 2026, marking the 11th consecutive quarter of growth. The headline inflation rate was 8% year-on-year in September, with gross official reserves reaching US$6.9 billion at the end of August 2026.

IMF Mission Chief for Sri Lanka, Evan Papageorgiou, noted that the staff-level agreement awaits IMF Executive Board approval, which depends on the presentation of Sri Lanka’s 2027 Budget to Parliament and a review of financing assurances.

The IMF highlighted ongoing risks for Sri Lanka, including uncertainties from the Middle East conflict, global trade policies, and the effects of El Niño. The IMF emphasized the importance of prudent economic policies and structural reforms for maintaining macroeconomic stability, enhancing revenue, improving public investment management, and supporting sustainable growth.

The IMF also stressed the need for cost-recovery energy pricing with targeted support for vulnerable groups, strengthening social safety nets, maintaining exchange-rate flexibility, and preserving the anti-corruption framework. The IMF delegation visited Sri Lanka from September 10 to 23, 2026, and held virtual discussions with senior officials to finalize the agreement.