Sri Lanka receives first tranche of IMF bailout

Sri Lanka has received the first tranche of an IMF bailout programme, President Ranil Wickremesinghe told parliament on Wednesday.

The island nation was scheduled to receive a $330 million tranche, the first part of a nearly $3 billion bailout approved by the International Monetary Fund on Monday.

"This sets the stage for Sri Lanka to have better fiscal discipline and improved governance," Wickremesinghe said on Wednesday.


The IMF bailout is expected to catalyse additional support to the tune of $3.75 billion from the likes of the World Bank, the Asian Development Bank and other lenders. It clears the way for Sri Lanka to rework a substantial part of its $84 billion worth of public debt.

Lakhan State finance minister Shehan Semasinghe said in a recent interview that Sri Lanka is ready to engage in restructuring talks with bilateral and private creditors to recover debt sustainability as "soon as possible."

This was the 17th IMF bailout for Sri Lanka and the third since 2009.