With the approval of the Extended Fund Facility (EFF) by the International Monetary Fund (IMF) which is due on 20 March, Sri Lankan exporters will receive foreign exchange on a priority basis, said the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe.

Speaking during a televised political talk show, he said: “Some $ 400 million is expected as the first tranche of the IMF bailout. The exporters have been complaining that they could not source raw materials for their industries as they are short of dollars. The Government and certain industries were badly hit by this shortfall. Recently, the International Finance Corporation (IFC) of the World Bank Group provided $ 400 million to three local private banks. In addition, the appreciation of the Sri Lankan rupee followed the inflow of $ 500 million into local banks, thereby adding to the foreign exchange liquidity of the country. The tourism sector and foreign remittances have also shown an increase when compared to the earnings of the same period last year (2022).”

 The Governor also stated that after clearing the IMF hurdle, the country should boldly face the changes necessary to bring the economy back. “There may be temporary hardships, but we have to stick to the requirements if we are to maintain essential services for the public. Any backsliding will again lead to shortages and disruptions of civic life,” he said.