Sri Lanka receives USD 787 Mn from donor agencies

With the IMF approving the second tranche for assistance for Sri Lanka, the country has received several other inflows from donor agencies amounting to around USD 787 million.

These inflows for the first time after the economic crisis will help Sri Lanka to help increase the country’s Gross Official Reserve (GOR) position to USD 4 billion by the end of 2023. This is far higher than what the government and some rating agencies expected,” the Ministry of Finance

said. The IMF report at the end of the First Review forecasted that Sri Lanka’s foreign reserves would be at US$3.8 billion by the end of 2023 end.

“However, the usable GOR position is expected to be around US$2.6 billion by the end of 2023 after adjusting for the Peoples Bank of China swap (around US$1.4 billion) GOR position at the end of November 2023 stood at around USD 3.6 billion. These inflows will further strengthen budget support and cushion the government’s gross financing needs in the period ahead, a report by CT CLSA Securities (Pvt) Limited said. Following the completion of the First Review under the 48-month Extended Fund Facility (EFF) of the International Monetary Fund (IMF), the Government of Sri Lanka (GoSL) received the second tranche under the EFF of around USD 337mn on December 14, 2023.

Subsequently, Multilateral Development Banks have also disbursed the tranches earmarked under several programme financing channels.

The post Sri Lanka receives USD 787 Mn from donor agencies appeared first on DailyNews.