Sri Lanka is likely to clinch an agreement in the next several days that would help secure more funds from the International Monetary Fund even though it is still trying to firm up negotiations with creditors on debt restructuring.
Officials from the government and the IMF are close to reaching a staff-level agreement following talks in Morocco this week, according to people involved in the discussions, who asked not to be identified because the matter isn’t finalized yet.
Only a few outstanding issues remain, one person said, declining to provide more detail.
The IMF is assessing Sri Lanka’s progress toward meeting economic targets and reform goals set under the USD 3 billion bailout package.
A staff-level agreement is the first step needed in order for a second tranche of USD 334 million in loans to be disbursed.
Sri Lanka needs that deal, as well as separate agreements with its creditors on restructuring terms that also align with the program’s debt sustainability criteria, before the IMF board signs off on the next round of funding.
