As Sri Lanka advances on its path to economic recovery, the country’s leadership has expressed hope that the ongoing IMF program will be the last of its kind.
President Anura Kumara Dissanayake indicated that the current Extended Fund Facility (EFF) could mark the end of Sri Lanka’s dependence on IMF support, highlighting a shift toward economic self-sufficiency.
During a press conference, journalist Zulfick Farzan of News 1st questioned the IMF about the feasibility of Sri Lanka ending its reliance on IMF programs and the status of the upcoming review.
Julie Kozack, Director of the IMF’s Communications Department, acknowledged Sri Lanka’s progress with cautious optimism, praising the country’s commitment to difficult but necessary reforms.
Kozack highlighted several signs of recovery, including strong economic growth, low inflation, improved foreign reserves, better fiscal revenue collection, and near completion of debt restructuring.
She noted that these improvements are evidence of the “tremendous progress” made since the height of Sri Lanka’s economic crisis.
However, she stressed the importance of maintaining reform momentum throughout the remainder of the EFF program.
Governance reform has become a key area of focus, with the Sri Lankan government releasing an updated action plan in February that includes laws on public procurement and asset recovery.
These measures, aligned with the IMF’s governance diagnostic report, reflect the government’s commitment to transparency and accountability, Kozack said.
Overall, performance under the EFF remains strong, but the next phase of funding is contingent upon meeting certain prior actions and final approval by the IMF Executive Board.
Key among those actions is a 15% electricity tariff hike and the publication of revised guidelines by Sri Lanka’s energy regulator on 11th of June .
The IMF is currently assessing these steps, and upon successful completion of the review, Sri Lanka will gain access to approximately 344 million U.S. dollars in funding.
Although no official date has been set for the Executive Board’s decision, Kozack confirmed that it will be announced publicly in due course.
