Reuters - The International Monetary Fund said on Thursday that there is "strong expectation" that Sri Lanka will reach a deal with its commercial creditors by the completion of the IMF's second review.

Sri Lanka is in talks with bondholders to restructure about $12 billion in debt, a key step in its bid to emerge from a punishing financial crisis.

"There is a strong expectation that agreements with commercial creditors consistent with program parameters will be reached by completion of the second review," IMF spokesperson Julie Kozack told a press briefing.

The IMF reached a staff-level agreement with Sri Lanka on its second review of a four-year bailout programme late last month, but it still needs approval from the IMF's board.