The International Monetary Fund (IMF) has called on the Sri Lankan government to accelerate the restructuring of SriLankan Airlines and make stronger progress in reforming other state-owned enterprises (SOEs).
During a virtual press conference, IMF Mission Chief for Sri Lanka Evan Papageorgiou stated that authorities had already prepared a medium-term strategic plan to restore the airline’s operational viability and address its longstanding debt issues.
He acknowledged the government’s allocation of Rs. 20 billion in the current budget to repay some of the airline’s debt and noted that SriLankan Airlines had appointed a financial advisor to restructure its international bonds. However, he emphasized the need for faster progress to effectively resolve outstanding challenges.
Papageorgiou reiterated the government’s overall commitment to improving SOE governance and addressing legacy debt. He highlighted key goals such as ensuring SOEs do not burden the state, reducing risks from guarantees issued to them, avoiding foreign currency borrowings, and improving transparency—especially through the timely publication of audit reports from 52 SOEs.
He also stressed that SOEs should be run efficiently on a commercial basis, similar to private companies, ensuring consumers receive fair value and services are free from corruption.
While acknowledging signs of economic recovery, increased reserves, and ongoing structural reforms, Papageorgiou also warned of risks linked to global trade uncertainties. He assured that the IMF stands ready to work with Sri Lanka on any necessary policy adjustments within the framework of the current programme.
