Former President Ranil Wickremesinghe has issued a grave warning Sri Lanka is on the verge of losing critical international financial support, including from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).
Speaking publicly, Wickremesinghe revealed that the IMF is reconsidering its position in Sri Lanka due to the government’s failure to meet agreed-upon conditions particularly the crucial revision of electricity tariffs, which was to be completed by March 31 as part of the IMF’s Extended Credit Facility Program.
As a result of the delay, Sri Lanka has missed the window to receive the fifth installment of IMF funds amounting to $344 million which was originally expected by mid-April. Wickremesinghe emphasized that since the government has yet to submit the new electricity pricing structure, approval from the IMF Executive Board remains pending, putting the much-needed funds on indefinite hold.
But the situation may spiral further.
Wickremesinghe warned that Sri Lanka’s failure to implement IMF-backed reforms is not only jeopardizing the $344 million disbursement but may also threaten future financial assistance from the World Bank and the Asian Development Bank. Both institutions are closely monitoring the country’s progress, and any sign of policy non-compliance could stall or cancel their development aid.
In response, Minister of Labor and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando attempted to offer reassurance. Speaking at a press briefing held by the Government Information Department, he insisted that the IMF has been updated and that all unresolved issues particularly concerning electricity tariffs will be addressed by June.
However, with billions in development funding hanging in the balance and a faltering reform record, critics say time is rapidly running out for Sri Lanka to meet its commitments and avoid a catastrophic pullout by its key financial lifelines.
