Sri Lanka is in talks with International Monetary Fund (IMF) to borrow USD 3 billion under IMF's Extended Fund Facility (EFF).

Sri Lanka is set to have another round of talks with IMG in June to reach a staff-level agreement.

IMF has previously stated that Sri Lanka required structural economic reforms before the country will be eligible for relief funds. If successful, this will be the island nation's 17th IMF EFF plan.

Newly elected Prime Minister Ranil Wickremesinghe is set to share interim budget in the coming weeks.

Sri Lankan government hiked the corporate tax and raised value added tax (VAT) to 12% on Tuesday to boost revenue.

The island nation has recently appointed financial and legal advisers to hold talks with bondholders and bilateral lenders such as Japan and China.