The International Monetary Fund (IMF) has confirmed that approval of the fourth review of Sri Lanka’s programme under the Extended Fund Facility (EFF) is dependent on the restoration of cost-reflective electricity pricing.

Speaking at a press briefing, IMF Spokesperson Julie Kozack stated that the Executive Board’s approval is subject to two main conditions:

1. Implementation of prior actions, including restoring cost-recovery-based electricity tariffs and enabling the automatic pricing mechanism.
   
2. Completion of the financing assurances review, which includes evaluating debt restructuring progress and the commitment of multilateral partners.
   

Kozack reiterated that the Executive Board meeting is expected in the coming weeks, pending fulfilment of these conditions.

A staff-level agreement on the fourth review was reached on April 25, and approval would unlock approximately USD 344 million in financial assistance for Sri Lanka