In June 2021, the International Monetary Fund (IMF) approved a $787 million loan to Sri Lanka under its Extended Fund Facility (EFF) program. The EFF program is a long-term arrangement that provides financial assistance and policy support to help countries implement reforms that promote economic stability and growth.
The loan was approved after Sri Lanka met certain conditions set by the IMF, including implementing fiscal and structural reforms to reduce the country's debt and improve its economic performance. The loan is expected to support Sri Lanka's efforts to stabilize its economy, address its balance-of-payments issues, and reduce its debt burden.
However, the loan has also been controversial, with some critics expressing concerns about the conditions attached to the loan and the impact it may have on the country's economy and people. Some have argued that the IMF's austerity measures may lead to cuts in social spending and worsen the living standards of Sri Lankan citizens.
Overall, the IMF loan is a significant development for Sri Lanka and its economy, but its long-term impact remains to be seen.
