📈 IMF Grants Waiver for Treasury Debt Breach

The IMF has approved a waiver of non-observance for a performance criterion breach following a $ 2.5 million cyber-heist that caused a missed debt payment to the Australian Government. • Incident Impact: The diverted payment to Export Finance Australia represented approximately 0.002% of GDP. • Program Status: The waiver was approved under the combined fifth and sixth reviews of the Extended Fund Facility (EFF). Performance was otherwise assessed as strong, with all other end-December 2025 quantitative criteria met and fiscal targets exceeded. • Corrective Actions: • Authorities will implement new standard operating procedures for debt management by end-June. • Deployment of the new Meridien debt management system is set for end-August to enhance payment verification. • Previous expenditure arrears have been cleared, with no new instances reported in H2 2025. • Financial Outcome: The approval allows Sri Lanka to remain in program compliance and proceed with a disbursement of approximately US$ 695 million to support ongoing economic reforms.