Economic Stabilization Program

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The special policy-based loan (SPBL) is part of a comprehensive economic reform program led by the International Monetary Fund (IMF), which is underpinned by its $3.0 billion Extended Fund Facility (EFF) arrangement for balance of payment (BOP) support to (i) restore macroeconomic stability and debt sustainability, (ii) safeguard financial stability, and (iii) undertake structural reforms to unlock Sri Lanka's growth potential. All program measures of the IMF's EFF are mindful of the need to protect the most vulnerable and improving governance. Aligned with the IMF's EFF, the SPBL is critical in building public confidence on macroeconomic stabilization by facilitating government's efforts for fiscal consolidation, restoring price stability, building external buffer, and financial stability at the initial stages of the reform program.