Sri Lanka has reached a milestone in its economic recovery as the International Monetary Fund (IMF) approved the payout of a $334 million installment. This payment falls under the $2.9 billion bailout package aimed at saving the country about its 2022 bankruptcy.
This latest tranche takes the overall financing provided by the IMF to Sri Lanka to around $1.3 billion. The decision was made following the IMF Executive Board’s completion of the third review under Sri Lanka’s 48-month Extended Fund Facility (EFF).
Sri Lanka has made significant achievements in meeting its economic targets, while the indicative target to ensure social spend was missed, the IMF says . The Paris-based institution cited compliance with structural reforms, including the bond exchange completed in the past month, as a crucial step towards a return to debt sustainability. 
“Sri Lanka’s reform efforts are paying off, as economic recovery is gaining traction. But implementing these reforms is crucial for medium term financial stability”, IMF said.
Sri Lanka, which defaulted on its foreign borrowings for the first time in 2022, has been receivers of international assistance. The economic crisis has previously triggered countrywide protests which made the government to change the leadership. Despite having a new government under the leadership of President Anura Kumara Dissanayake, the country continues on the journey of economic stabilization and recovery.
