International Monetary Fund (IMF) says that continued ownership of reforms is essential to rebuild fiscal credibility to improve governance and reduce corruption vulnerabilities.

Releasing the second tranch of the IMF’s $ 2.9 billion extended fund facility, IMF said that as part of the IMF-supported arrangement, Sri Lanka has undertaken significant reforms to pave the way out of a deep economic and debt crisis.

“The economy is showing tentative signs of stabilization, supported by rapid disinflation and a significant fiscal adjustment. Tax revenues have increased but not as much as initially projected, and reserves accumulation has slowed, including due to slow progress on debt restructuring,” IMF said in a statement.

The authorities reached agreements in principle (AIPs) with official creditors on debt treatments consistent with program parameters and are in good faith discussions with their private creditors.

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