The International Monetary Fund (IMF) has recognized Sri Lanka’s continued economic progress as the country prepares for its fifth review under the Extended Fund Facility (EFF) arrangement.
IMF Communications Director Julie Kozack, speaking at a press briefing, provided an update on Sri Lanka’s economic program and the upcoming evaluations.
On July 1st, the IMF Executive Board completed the fourth review of Sri Lanka’s program, releasing $350 million and raising the total financial assistance to $1.74 billion.
Kozack praised Sri Lanka’s ambitious reform agenda, noting significant improvements in key economic indicators such as low inflation, increasing revenue collection, and growing international reserves.
She highlighted that Sri Lanka’s post-crisis growth rebounded to 5 percent in 2024, and the revenue-to-GDP ratio improved from 8.2 percent in 2022 to 13.5 percent in 2024.
The country’s debt restructuring process is nearing completion, with overall program performance described as generally strong.
Looking ahead, the IMF’s fifth review is scheduled for the fall of 2025.
Despite a positive macroeconomic outlook, Kozack acknowledged ongoing risks from global trade tensions and policy uncertainties.
She emphasized that the IMF team will assess these external risks and their potential impact during the upcoming review, in close consultation with Sri Lankan authorities.
These assessments will be integral to discussions on policies and program matters during the Fifth Review.
