The support facility sought by Sri Lanka for an economic bailout from the IMF may become available by the end of this month, the IMF said on Monday.

It came after an IMF team visited Colombo from March 31-April 11 to hold consultations and to discuss the government's request for a fund-supported arrangement.

"The mission made significant progress toward a staff level agreement with the government on an economic programme that could be supported by a 36-month Extended Fund Facility (EFF)" an IMF release said.

The facility will be subject to approval by IMF Management and the Executive Board, in the next two weeks, it said.

Sri Lanka is expecting between $1.5 to 2 billion under a bailout package for the economy hit by the slowdown and high debt servicing.

The IMF has noted that "Macroeconomic performance in 2015 reflected a mix of positive underlying growth momentum, the impact of domestic policies, and an increasingly difficult external environment".

"The fiscal deficit expanded, public debt increased, and the balance of payments position deteriorated despite an improvement in the terms of trade. Real GDP growth in 2016 is expected to remain around 5% and inflation in the low single digits.

"Over the medium term, there is potential for growth to rise closer to Sri Lanka's estimated potential output level, but prospects will hinge on a policy upgrade in the near term and removing bottlenecks to trade and investment," it said.

(PTI)