India played a key role in IMF’s clearance of 48-month EFF to Sri Lanka

According to sources, India played a key role in convincing the IMF to approve the EFF for Sri Lanka. The Indian government reportedly lobbied hard for the approval of the facility, which is expected to help stabilize the Sri Lankan economy and strengthen its external position.The EFF for Sri Lanka comes at a time when the country is facing several economic challenges, including high levels of debt and a widening current account deficit. The IMF’s approval of the facility is expected to help the country address these challenges and implement much-needed structural reforms.
The EFF is also expected to have a positive impact on India-Sri Lanka relations, which have been strained in recent years. The two countries have had several disagreements over issues such as fishing rights and security, and there have been concerns about the influence of China on Sri Lanka.
The approval of the EFF is seen as a significant step towards strengthening India-Sri Lanka relations and promoting regional stability. India’s role in securing the approval of the facility is being seen as a sign of the country’s growing influence in the region.
The EFF for Sri Lanka is worth around $1.5 billion and is aimed at helping the country address its balance of payments issues and strengthen its economic fundamentals. The facility is expected to be disbursed in six tranches over a period of four years.
The approval of the EFF is being seen as a major achievement for the Sri Lankan government, which has been struggling to address the country’s economic challenges. The government has committed to implementing a range of structural reforms as part of the EFF program, including measures to improve tax collection and reduce debt.The approval of the EFF is also expected to boost investor confidence in Sri Lanka and help attract foreign investment to the country. The IMF’s approval of the facility is seen as a positive signal for international investors, who have been wary of investing in Sri Lanka in recent years due to its economic challenges.
Overall, India’s role in securing the approval of the EFF for Sri Lanka is being seen as a significant achievement for the country’s foreign policy and regional engagement. The facility is expected to have a positive impact on the Sri Lankan economy and strengthen India’s ties with its neighbor.
What do you think about this share your views in the comments.