The International Monetary Fund (IMF) has noted that Sri Lanka’s economic recovery is gaining momentum, with reforms beginning to show positive results.
Julie Kozack, Director of the IMF’s Communications Department, highlighted key developments such as low inflation, improving fiscal revenue, and growing international reserves. Economic growth reached 5% in 2024, following two years of contraction, and the IMF expects the recovery to continue into 2025.
However, Kozack cautioned that Sri Lanka’s economy remains vulnerable, emphasizing the need for sustained reforms to ensure long-term macroeconomic stability and debt sustainability.
The IMF has provided Sri Lanka with USD 334 million as part of the Extended Fund Facility program, bringing the total financial support to $1.34 billion. This latest disbursement was approved by the IMF Executive Board on February 28, following the third review under the EFF arrangement.
