Mar 21, Colombo: Minister of Transport, Highways and Mass Media and Cabinet Spokesman Dr. Bandula Gunawardena said that the Cabinet of Ministers yesterday evening granted authority to Finance, Economic Stabilization and National Policies Ministry Secretary or the Deputy Treasury Secretary to sign the promissory note and all other documents required to obtain the Extended Fund Facility (EFF) of US$ 2.9 billion from the International Monetary Fund on behalf of the Government.

The IMF staff and the Government authorities reached a Staff Level Agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility of about SDR 2.2 billion (equivalent to US$2.9 billion).

The objectives of this new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable people, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

The funds received under this Extended Fund Facility will be used to provide direct budgetary financing and would need to be repaid with the interest as per the terms of the Facility.

The Central Bank of Sri Lanka will act as the fiscal agent of the Government of Sri Lanka for this facility.