SL set to be removed from IMF’s surcharge list of countries from November
Sri Lanka is set to be removed from the International Monetary Fund’s (IMF) surcharge list of countries, once the multilateral lender’s latest lending reforms come into effect from November 1 of this year.
This was possible for the island nation due to reforms that raise the threshold for surcharges from 187.5% to 300% of a country’s quota, significantly reducing its borrowing costs.
The IMF membership recently reached a consensus on a comprehensive package that substantially reduces the cost of borrowing, while safeguarding the IMF’s financial capacity to support the countries in need. The IMF announced that its Executive Board concluded the Review of Charges and Surcharge Policy.
Sri Lanka last year joined the list of 22 heavily indebted countries facing controversial surcharges imposed by the IMF.The IMF announced that Sri Lanka would be among eight countries that would no longer be subjected to Level-based surcharges.
“Out of 52 member countries currently borrowing from the General Resources Account, 19 are subject to surcharges. Once the reform becomes effective on November 1, 2024, the number of countries paying surcharges will fall from 19 to 11.
