Before giving financial aid, IMF asked Sri Lanka to take several corrective steps

The International Monetary Fund (IMF) has come forward to help Sri Lanka, which is facing economic crisis. Sri Lanka is facing the most severe economic crisis since independence in 1948. The country has a severe shortage of foreign exchange, due to which it is unable to import essential commodities.

In a statement, the IMF said that the IMF and Sri Lankan officials have agreed to a 48-month loan under the Extended Fund Facility (EFF) of about $ 2.9 billion.

“The officials of the IMF and Sri Lanka have agreed to an employee-level agreement to support the economic policies of the beleaguered country,” the IMF said in a statement. Under this arrangement, $2.9 billion will be provided in the Extended Fund Facility (EFF) over a period of 48 months.

It said the assistance is aimed at restoring macroeconomic stability and debt affordability in Sri Lanka and at the same time protecting financial stability.

Before giving financial help, the IMF had asked Sri Lanka to take several corrective steps. It also called for additional funding from multilateral partners and debt relief from Sri Lankan lenders to help ensure debt affordability and bridge the financial gap. PLC/GT


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