The International Monetary Fund (IMF) has commended Sri Lanka for its determined progress in carrying out difficult but essential economic reforms and urged the country to sustain its momentum through the remainder of the Extended Fund Facility (EFF) program.
Julie Kozack, Director of the IMF’s Communications Department, noted that Sri Lanka’s efforts are beginning to show tangible results. “We are seeing a remarkable recovery in growth after the crisis. Inflation is low, foreign reserves are increasing, fiscal revenue is improving, and the debt restructuring process is largely complete,” she said during a media briefing.
Kozack emphasized that while substantial progress has been made, it is vital for Sri Lanka to maintain its reform drive to ensure long-term stability and growth. “It is really important to recognize the significant efforts and the tremendous progress that Sri Lanka has made,” she said.
On April 25, Sri Lankan authorities and IMF staff reached a staff-level agreement for the fourth review of the country’s economic reform program. The program has been delivering encouraging results, with overall performance rated as strong and government commitment to its objectives reaffirmed.
The completion of this review is now pending final approval by the IMF Executive Board, which depends on the fulfillment of specific prior actions. Among them are a 15% increase in electricity tariffs and the publication of revised wholesale supply transaction accounting guidelines—both announced by regulators on June 11.
Kozack confirmed that the IMF team is actively engaged with Sri Lankan authorities to assess these measures. Upon successful board approval, Sri Lanka will gain access to a disbursement of approximately $344 million.
She reiterated that macroeconomic and structural reforms are crucial for all IMF member countries, including Sri Lanka, and that sustained reform implementation is key to securing continued economic recovery and long-term resilience.
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