According to independent analysis from Verité Research Sri Lanka has met most of its initial commitments under its International Monetary Fund (IMF) bailout program, but concerns remain over delays in governance and transparency reforms
The island nation, grappling with its worst economic crisis in decades, secured a crucial $2.9 billion loan from the IMF in March 2023.
Verité Research, which tracks Sri Lanka’s progress under the Extended Fund Facility (EFF) program via its online platform “IMF Tracker,” reports that of the 73 commitments due by end-November 2023, 60 have been met, albeit with some delays.
However, 13 commitments remain unfulfilled, raising concerns about Sri Lanka’s commitment to crucial reforms.
Five of these were irreversibly missed and cannot be carried forward, while eight have been deferred to the second phase of the program leading up to the next IMF review.
Adding to the complexity, the IMF has modified due dates for an additional 27 commitments initially set for after November, categorizing them as “pending” alongside the eight carried-forward obligations. Moreover, Sri Lanka and the IMF have added 75 new commitments to the program.
Consequently, the second phase of the EFF kicks off with a staggering 110 commitments hanging in the balance. Notably, four specific governance and transparency-related commitments remain unfulfilled, including the launch of an online transparency platform for public procurement and tax exemptions, and the establishment of a merit-based selection process for directors of the anti-corruption commission.