In its latest economic update, the institution said the global economy will grow 2.9% this year.
However, China's Jan. 19 letter may not be enough for Sri Lanka to immediately gain the IMF's approval for the critical loan, said Sri Lankan sources.
Fragmentation across the world could cost the global economy up to 7% of GDP, according to a new report by the IMF.
The IMF says it "does not recommend large and untargeted fiscal packages" and that the U.K.'s latest economic measures will "likely increase inequality".
Sri Lanka will present to its international creditors on Friday the full extent of its economic troubles and plans for a multi-billion dollar IMF bailout.
Sri Lanka is in the middle of a crippling economic crisis — and analysts say one powerful family is to blame.
The IMF on Thursday said it had reached a staff-level agreement with Pakistan that would pave the way for disbursement of $1.17 billion if approved.
The nominee for the U.S. Treasury's top economic diplomacy job said on Tuesday he wants to limit China's growing global lending influence.
Sri Lanka has been suffering its worst economic crisis in history, with a severe shortage of foreign exchange stalling essential imports like drugs and fuel.
A misguided killing of the long-running "Ease of Doing Business" report underscores a need for reform at the World Bank.
Central bankers are tightening the U.S. economy amid historic inflation pressures. Meanwhile, the shock of war in Ukraine is slowing global growth. These factors raise the threat of a return to stagflation. Over the decade, Americans could see persistent price increases unless the central bank lifts rates to help curtail them. Federal Reserve Chair Jerome Powell has called for a swift return to neutral interest rates to calm markets. Can the Fed stick a soft landing? Only time will tell.
James McCormack of the credit ratings agency says Sri Lanka has had "a lot of IMF programs … but they've never had a debt restructuring, so this one definitely is different."
Carlos Casanova of Union Bancaire Privee warns the worst months for activity in China activity may be ahead, though the firm maintains its average economic growth forecast for the country at 5.0% for 2022.
The International Monetary Fund said discussions with Sri Lanka on a potential IMF loan program are at an early stage.
New 2022 IMF forecasts for real GDP for selected countries in Asia, Europe and the Americas.
Pierre-Olivier Gourinchas, the International Monetary Fund's new chief economist, joins 'Squawk on the Street' to discuss how much the war in Ukraine will weigh on global economic output. Gourinchas explains why he believes the U.S. economy can grow more than 3% this year and more.
'Mad Money' host Jim Cramer and the 'Squawk on the Street' team discuss new warnings to the global economy from the International Monetary Fund.
The Washington-based institution is now projecting a 3.6% GDP rate for the global economy this year and for 2023.
Economic mismanagement by successive governments weakened Sri Lanka's public finances, leaving its national expenditure in excess of its income.
"We still expect the world to be in positive growth territory," the IMF director said Thursday.