The loan was delayed under political pressure from the United States, Britain and other countries who felt the government was not doing enough to avoid civilian casualties as it closed in on the remnants of the once-powerful Tamil Tiger army.
Central Bank of Sri Lanka Governor Nivard Cabraal said the final defeat of the Tigers had helped alleviate the island's balance of payments concerns.
"Things are looking good after the war. The urgency for an IMF loan is not there anymore," Cabraal told AFP.
"We have over 1.6 billion dollars in reserves, enough to pay for over two months of imports.
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And the figures are steadily climbing," Cabraal said.
Foreign reserves, which fell by more than two thirds when the central bank sold dollars to defend the local rupee last year,