The International Monetary Fund (IMF) has approved 1.5 billion US dollar loan to Sri Lanka. For this IMF has already transferred 168 million US dollars as the first Instalment with immediate effect to support the country’s economy, which is showing “signs of strain”. The Executive Board of the IMF has accepted this 36-month extended arrangement under its Extended Fund Facility (EFF) with Sri Lanka for an amount equivalent to 1.1 billion under special drawing rights (US$ 1.5 billion).
The IMF agreement aims to meet the balance of payments needs arising from a deteriorating external environment and pressures that may persist until macroeconomic policies can be adjusted. There will be an additional 650 million US dollars support in other multilateral and bilateral loans, bringing total support to about 2.2 billion US dollars. The remaining part of the US $1.5 billion loans will be available in six installments subject to quarterly reviews.
So let’s discuss some questions related to this post :
1. Name the organization which has approved 1.5 billion US dollar loan to Sri Lanka ?
2. The IMF has approved the US$1.5 billion loan to Sri Lanka under which facility ?