IMF to approve $2.9B bailout package for Sri Lanka: central bank governor

COLOMBO -- Sri Lankan central bank governor Nandalal Weerasinghe told media on Sunday that the country's "dollar crisis" is over, as the International Monetary Fund (IMF) is set to approve a $2.9 billion bailout package for the country on Monday.

He said Sri Lanka will hence has adequate foreign reserves for imports for essential sectors, adding that the IMF package will boost investor sentiment and enhance the country's access to more foreign funds and investments.

The IMF package will include budgetary support to Sri Lanka's government, which is a new element in IMF lending, he said.

Sri Lanka started the related negotiations with the international lender in 2022 after the South Asian country was hit by a severe economic crisis.