Senior IMF Mission Chief for Sri Lanka, Peter Breuer told a media briefing on Friday (Oct. 20) that the global lender has taken note of the tentative agreement.

On October 11, the Finance Ministry revealed that Sri Lanka has reached “an agreement on the key principles and indicative terms of a debt treatment” with the China Exim Bank.

The Sri Lankan authorities had said the agreement constitutes a key step towards restoring the island’s long-term debt sustainability and would pave the way to a prompt economic recovery.

The indicative terms agreed are expected to provide the necessary fiscal space for Sri Lanka to implement its ambitious reform agenda.