(Reuters) -The International Monetary Fund (IMF) has reached a staff-level agreement with Sri Lanka to complete the fifth review of its reform program, paving the way for access to about $347 million in financing, the organisation said on Thursday.
The country will have access to the financing once the review is approved by the IMF Executive Board, bringing the total money unlocked under its nearly $3 billion support programme to the island nation to about $2.04 billion.
Sri Lanka is gradually recovering from its worst financial crisis in decades, triggered by a record dollar shortage three years ago.
The country’s 2026 budget should be in line with the IMF programme parameters to keep improving its finances on the back of strong revenue measures and prudent spending execution, the IMF said after its staff concluded a visit to the island nation.
The country requires sustained efforts to improve tax compliance, broaden the tax base, strengthen tax exemption frameworks and enhance public financial management among other measures, the IMF added.
(Reporting by Bipasha Dey and Abinaya Vijayaraghavan in Bengaluru; Editing by Christian Schmollinger and Harikrishnan Nair)
