IMF delegation to discuss bailout plan with Sri Lanka

Sri Lanka will go deep into discussions with the IMF on the structure of a $2.9 billion bailout programme during the lender's annual meetings in Washington later this month, the country's cabinet spokesperson said on Tuesday.

Central bank governor, treasury secretary, and financial advisors to new president Anura Kumara Dissanayake would lead the delegation heading to the meetings in Washington, minister Vijitha Herath said addressing reporters at a press briefing.

Dissanayake said that Sri Lanka will engage with the International Monetary Fund or IMF for the third review of its bailout programme, the approval of which will see the disbursement of a fourth allotment of about $337 million.

Beginning Wednesday, an IMF team will visit Colombo for three days, meeting with Dissanayake and his team to discuss the latest economic progress and reforms under Sri Lanka's IMF-backed economic programme, a spokesperson for the lender said.

"We are of the view that an evaluation needs to be conducted on the IMF programme but that will not be done with the delegation visiting this week," Herath said, adding that the IMF delegation was making a "courtesy call" this week.

The 2024 annual meetings of the IMF and the World Bank are scheduled between Oct. 21-26.

Millions of Sri Lankans voted for left-leaning leader Dissanayake for the debt-ridden island nation's presidential election in September - the first since its economy collapsed in 2022—putting trust in his graft-fighting promises and commitment to strengthen a fragile economic recovery.

Investors are worried that Dissanayake's intention to renegotiate the conditions of the IMF bailout may delay further repayments. However, the newly elected president's words last week eased some doubts by stating that the programme would continue under his administration.