IMF signals continued support for Sri Lanka as economy recovers

The International Monetary Fund (IMF) has expressed its readiness to provide continued support to Sri Lanka as the nation demonstrates significant economic recovery. Sonali Jain-Chandra, Deputy Division Chief of the IMF’s Asia and Pacific Department, noted that Sri Lanka has achieved positive economic growth for 11 consecutive quarters following its economic crisis.

Key indicators of this recovery include a robust fiscal situation, an increased national revenue ratio, and a largely completed debt restructuring process. The IMF and Sri Lankan officials have already reached a staff-level consensus on the seventh review of the country’s Extended Fund Facility (EFF) program. Once the IMF Executive Board approves this review, Sri Lanka is expected to gain access to financing equivalent to approximately $345 million in Special Drawing Rights.

As the current EFF program approaches its conclusion in March 2027, the IMF indicated it remains willing to engage through new financing arrangements, policy guidance, or technical assistance to strengthen institutions. The decision to pursue further formal funding arrangements rests with the Sri Lankan authorities.