Sri Lanka is inching out of its worst financial crisis in decades, triggered by record-low foreign exchange reserves last year that saw its economy contract 7.8% in 2022.

The island’s economy has been gradually stabilising after locking down a four-year programme with the IMF in March. Its first review is expected to be approved by the global lender next week, which will release a second tranche of about $334 million in funding.

Alongside the IMF programme the Asian Development Bank is likely to provide total budget support of $2 billion over the next four years, said ADB, Sri Lanka Resident Mission, Country Director Takafumi Kadono