IMF Says More Time Needed to Assess Global Shock Impact on Sri Lanka’s Recovery
The International Monetary Fund (IMF) has announced that it needs additional time to assess the full impact of recent global shocks on Sri Lanka’s economic recovery and the progress of its ongoing reform program.
This statement followed the conclusion of an IMF visit on April 3, led by Senior Mission Chief Ivan Papageorgiou, as part of the review under the Extended Fund Facility (EFF).
While acknowledging signs of economic recovery, the IMF highlighted that external vulnerabilities and global uncertainties continue to complicate Sri Lanka’s economic outlook and the evaluation of reform outcomes.
Despite these challenges, the IMF praised Sri Lanka’s reform agenda, citing several positive developments:
- Projected economic growth of 5% in 2024
- Inflation decline to -2.6%
- Gross official reserves rising to US$6.5 billion by March 2025
- Strong fiscal reforms contributing to public finance stability
The IMF also commended the Central Bank of Sri Lanka for effective foreign exchange management, and emphasized the need to maintain reform momentum amid global economic shifts.
The Fund reiterated its support for Sri Lanka’s efforts but noted that a comprehensive review would require further analysis in the context of evolving global conditions.
