The International Monetary Fund (IMF) is the key international organization that observes the macroeconomic policies and monitors the global financial system tracking movements of exchange rates and the Balance of Payments (BOP) of its member countries. The primary mission of the IMF is to provide financial assistance to countries experiencing BOP difficulties.

In the past Sri Lanka has received IMF assistance on a number of occasions to tide over periods of foreign exchange difficulty. Sri Lanka’s formal exchanges with the IMF date back to the late 1970s when the IMF an extended Stand-by Arrangement facility to implement liberalization policies. Sri Lankan governments continued to obtain such credit facilities in 1977, 1979, 1980, 1981, 1982, 1983, 1988, 1989, 1991, 2001, 2003 and in 2005. A brief description of the most recent assistance received by Sri Lanka from the IMF is given below as a preamble to the current loan facility.

Policy Brief: A Critical Analysis of the IMF Loan Facility

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