Sri Lanka’s central bank expects the IMF to release a $350 million loan tranche, which Governor Nandalal Weerasinghe says is needed to strengthen foreign reserves after a surge in vehicle imports following the lifting of a five-year ban in February. The country has already spent about $1.2 billion on car imports between February and September, far more than anticipated, though demand has begun easing he claimed .
With the IMF tranche and other inflows, Sri Lanka anticipates around $750 million arriving next month according to the governor. The government is implementing reforms under a $2.9 billion IMF bailout agreed in 2023 after the nation’s historic 2022 default.
The rupee has weakened 5% this year, and inflation is expected to rise to 5% by year-end. The IMF has reached a staff-level agreement to release the next instalment pending board approval, citing improved revenue from vehicle taxes. However, the World Bank warns the economic recovery remains uneven, with many households still struggling post-crisis.
MDW Live! News Network 
Sri Lanka’s central bank expects the IMF to release a $350 million loan tranche, which Governor Nandalal Weerasinghe says is needed to strengthen foreign reserves after a surge in vehicle imports following the lifting of a five-year ban in February. The country has already spent about $1.2 billion on car imports between February and September, far more than anticipated, though demand has begun easing he claimed .
With the IMF tranche and other inflows, Sri Lanka anticipates around $750 million arriving next month according to the governor. The government is implementing reforms under a $2.9 billion IMF bailout agreed in 2023 after the nation’s historic 2022 default.
The rupee has weakened 5% this year, and inflation is expected to rise to 5% by year-end. The IMF has reached a staff-level agreement to release the next instalment pending board approval, citing improved revenue from vehicle taxes. However, the World Bank warns the economic recovery remains uneven, with many households still struggling post-crisis.
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