Sri Lanka has successfully completed discussions on the Third Review of its Extended Fund Facility (EFF) with the International Monetary Fund (IMF), a crucial step in the country’s efforts to stabilize its economy and implement structural reforms.
The talks, held at the Presidential Secretariat, were led by IMF Senior Chief of Mission Peter Brewer and Deputy Minister of Economic Development Anil Jayantha Fernando. The review evaluated Sri Lanka’s progress in meeting key performance criteria and reform commitments under the $3 billion EFF program, which was approved in March 2023 to address the country’s severe economic crisis.
The successful conclusion of the review is expected to unlock the next tranche of IMF funding, providing much-needed support to bolster Sri Lanka’s foreign exchange reserves and improve financial stability. This also serves as a positive signal to international creditors and investors, enhancing confidence in the government’s commitment to fiscal discipline and economic recovery.
Sri Lanka’s EFF program focuses on debt restructuring, revenue mobilization, and reforms to state-owned enterprises, alongside measures to protect vulnerable groups. The government has faced significant challenges in implementing these reforms, including political resistance and public concerns over austerity measures.
As Sri Lanka continues to navigate its post-crisis recovery, the IMF’s endorsement underscores the importance of sustained reform efforts. It also highlights the need for transparent communication with citizens and stakeholders to maintain trust and momentum in overcoming the economic challenges ahead.
