Sri Lanka to exit current IMF programme in 2027

Sri Lankan Minister Bimal Rathnayake has announced that the government intends to exit its current International Monetary Fund (IMF) Extended Fund Facility (EFF) programme when it expires in March 2027. While the government plans to conclude the four-year arrangement, Rathnayake stated that Sri Lanka will maintain normal engagement with international institutions like the IMF and the World Bank as part of its participation in the global economic system.

The Minister indicated that the government does not currently foresee a need for a new IMF programme specifically linked to debt restructuring once the existing EFF ends. However, he noted that the country will remain obligated to its existing debt repayment commitments for several years.

Rathnayake also expressed criticism regarding certain debt restructuring terms negotiated by the previous administration. He specifically highlighted mechanisms where debt repayments to certain creditors fluctuate based on economic performance, arguing that increased repayments during periods of economic growth could limit the resources available to the public. The government is reportedly exploring financial-market mechanisms to mitigate these impacts.