The Executive Board of the International Monetary Fund today completed the eighth and final review of Sri Lanka's economic performance under a program supported by a Stand-By Arrangement.

The completion of the review enables the immediate disbursement of an amount equivalent to about 415 million US dollars, bringing total disbursements under the arrangement to an amount equivalent 2.49 million US dollars.

Following the Executive Board's discussion on Sri Lanka, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated that following robust growth in the first quarter of 2012, activity has started moderating in response to policy tightening and weakening global demand.

He further stated that the Sri Lankan authorities have undertaken substantial macroeconomic policy adjustments to stabilize reserves and that It will be important to continue macroeconomic stabilization and structural reforms efforts, in particular maintaining exchange rate flexibility while building international reserves.