A controversial Rs. 500 billion spending decision has triggered fresh scrutiny from the IMF, with a high-level delegation heading to Colombo to question fiscal discipline, funding sources, and the government’s economic direction.
A high-level delegation from the International Monetary Fund is expected to arrive in Sri Lanka in the coming days, as fresh tension emerges between the IMF and the Malima government over fiscal policy and public spending.
The visit follows the government’s decision to secure parliamentary approval for a supplementary estimate of Rs. 500 billion for disaster management, despite objections raised by the IMF. That move has reportedly prompted concern in Washington, with IMF officials seeking clarity on how the funds were sourced and whether the spending aligns with agreed reform commitments.
According to informed sources, the visiting IMF team is preparing to question the government directly on revenue generation, financing mechanisms, and the broader impact of the additional expenditure on Sri Lanka’s debt sustainability and economic recovery program.
It is also reported that IMF representatives will use the visit to present a new set of proposals and conditions. These are expected to focus on tighter expenditure controls, stronger revenue collection measures, and renewed emphasis on fiscal discipline.
The visit comes at a sensitive moment for Sri Lanka’s economy, with IMF-backed reforms remaining central to stability, investor confidence, and continued access to international financial support.
