Staff-level agreement reached with IMF

Sri Lanka has reached a staff-level agreement with the International Monetary Fund (IMF) on economic policies, paving the way to conclude the combined Fifth and Sixth Reviews of the country’s reform programme under the IMF’s Extended Fund Facility.

Once approved by the IMF Executive Board, Sri Lanka is set to gain access to approximately US$700 million in financing.

The IMF noted that the economic reforms implemented by Sri Lankan authorities have continued to support the country’s recovery, with foreign reserves building up and both real GDP growth and revenue mobilisation surpassing expectations.

However, the nation remains highly exposed to the ongoing conflict in the Middle East and faces additional challenges in rebuilding after Cyclone Ditwah.

The IMF emphasised that advancing reforms is crucial to safeguard macroeconomic stability and keep the economy on a path toward recovery and inclusive growth.

Strengthening economic resilience, the Fund said, is essential for Sri Lanka to better withstand external shocks in an uncertain global environment.