MUMBAI: Sri Lanka dollar bonds soared on Tuesday, a day after the International Monetary Fund (IMF) said its executive board approved a nearly $3 billion bailout for Sri Lanka.

The decision will allow an immediate disbursement of about $333 million, the IMF said on Monday, potentially spurring financial support from other partners and helping Sri Lanka emerge from its worst financial crisis in over seven decades.

International bonds issued by the country soared by 0.17 cents to 1.20 cents, with March 2029 bond leading the gains.

Sri Lanka to receive first tranche from IMF in next two days

Sri Lanka President Ranil Wickremesinghe’s office said in a statement that the IMF program will help improve the country’s standing in international capital markets, making it attractive for investors and tourists.