Colombo: The International Monetary Fund (IMF) has initiated a review of Sri Lanka's bailout program, which was launched in response to the country's severe economic crisis. Sri Lankan officials are optimistic about securing an additional $330 million in funding, desperately needed to stabilize the nation's finances.

Last year's economic downturn in Sri Lanka led to critical shortages of food, fuel, and medicine, triggering months of civil unrest that ultimately resulted in the ousting of then-President Gotabaya Rajapaksa.

The IMF is currently assessing the $2.9 billion four-year bailout program that was approved in March.

Sri Lanka's Finance Minister, Ranjith Siyambalapitiya, expressed confidence, stating that he is "very hopeful of getting the second tranche of $330 million" from the IMF.

Colombo is actively engaged in discussions with its private creditors to restructure Sri Lanka's international sovereign bonds, and talks are also ongoing with bilateral lenders. China, which accounts for over 50 percent of the island's bilateral debt, has not publicly disclosed its position on debt restructuring but has indicated its support for Colombo.

In June, the IMF noted that Sri Lanka's economy displayed "tentative signs of improvement," but emphasized that the path to recovery remains challenging and that Colombo must undertake painful reforms.

Sri Lanka has responded to its economic challenges by implementing significant tax hikes and removing energy subsidies to boost state revenue and establish reserves required for financing essential imports.