The much-anticipated approval of Sri Lanka's Extended Fund Facility (EFF) program by the International Monetary Fund (IMF) Executive Board is expected "in the coming weeks," but its precise timing hinges on two key contingencies, according to Julie Kozack, Director of the IMF's Communications Department.
During a press briefing on May 22, 2025, Kozack addressed questions regarding the delay in the Board meeting for Sri Lanka's Fourth Review, which would unlock access to approximately $344 million in financing.
"The precise timing of the Board meeting is contingent on two things," Kozack stated. The first crucial factor is the "implementation of prior actions," primarily concerning the restoration of electricity cost recovery pricing and ensuring the proper function of the automatic electricity price adjustment mechanism. This directly addresses speculation that pending electricity tariff adjustments by the Sri Lankan government might be a cause for delay.
The second contingency is the "completion of the Financing Assurances Review." This review will focus on confirming committed financing contributions from multilateral partners to Sri Lanka and assessing whether adequate progress has been made in debt restructuring efforts.
Kozack reiterated that IMF Staff and the Sri Lankan authorities reached a Staff-Level Agreement on the Fourth Review of Sri Lanka's program under the EFF on April 25. Once approved by the Executive Board, Sri Lanka will gain access to the tranche of financing.