IMF approves $695 million for Sri Lanka as rupee comes under pressure
The Fund cleared two pending tranches of the 2023 bailout even as it trimmed its 2026 growth forecast to 3 percent.
The International Monetary Fund’s executive board has approved two pending instalments worth approximately $695 million under Sri Lanka’s 2023 bailout programme, offering Colombo a measure of relief at a moment of renewed currency strain.
The disbursement, cleared late last month, releases funds that had been held pending a review of the island’s reform commitments. Officials said the money would help shore up reserves as external pressures mount.
Growth forecast trimmed
Even as it released the funds, the Fund lowered its estimate for Sri Lanka’s 2026 economic growth to 3 percent, citing weaker tourism earnings and a softer global outlook. Economists say the figure underlines how fragile the recovery from the 2022 default remains.
For households still absorbing higher prices, the headline numbers matter less than the cost of living. But policymakers argue that staying inside the programme is the surest path back to stability and to lower borrowing costs over time.
Aisha writes on macroeconomics, the rupee and Sri Lanka’s recovery from default.
