IMF Concludes Visit, Seeks Agreement on Sri Lanka Economic Review

The International Monetary Fund (IMF) has concluded a staff mission in Sri Lanka, focusing on the fourth review of its $2.9 billion program, with discussions deemed productive by both parties. The IMF noted the importance of continued cooperation to bolster Sri Lanka's economic framework amid global uncertainties affecting financial markets. Significant progress has been made, including a post-crisis growth rebound of 5% in 2024 and a decline in inflation to -2.6% by March 2025. However, the IMF cautioned that more time is needed to assess the implications of recent external shocks on Sri Lanka's economy. The government remains committed to implementing reforms, and a staff-level agreement is anticipated soon, with Sri Lanka potentially receiving $335 million under the next tranche of aid. Overall, the ongoing dialogue aims to ensure financial stability and growth through international collaboration.