IMF commends Sri Lanka’s progress and reaffirms support for reform programme

Colombo, June 30 (Daily Mirror) - An International Monetary Fund (IMF) delegation has commended Sri Lanka’s economic resilience and reaffirmed its support for the Government’s reform agenda during a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat this morning (30).

According to the President’s Media Division (PMD), the delegation, led by IMF Deputy Director of the Asia and Pacific Department Sonali Jain-Chandra, met the President at the conclusion of its visit to Colombo from 24 to 30 June, during which it reviewed macroeconomic developments and the implementation of reforms under the Extended Fund Facility (EFF) arrangement.

The IMF praised the Government’s handling of the economy, noting that Sri Lanka had made stronger progress than many other countries under IMF-supported programmes. It also commended efforts to maintain macroeconomic stability despite external shocks, while remaining committed to the reform process.

The Fund said that Sri Lanka’s programme performance will be formally assessed during the Seventh Review of the EFF arrangement, expected in September, and noted that remaining commitments under the programme are expected to be completed ahead of the review.

It further stressed that sustaining reform momentum would be critical to managing external challenges, maintaining fiscal and external stability, and ensuring long-term inclusive economic growth.

President Dissanayake, meanwhile, reaffirmed his Government’s commitment to fully implementing the IMF programme, stating that the reforms are necessary not due to external pressure but to help steer Sri Lanka out of economic hardship and build a stronger economy.

He said the Government’s ultimate goal is to ensure that the benefits of economic recovery are felt by the public, adding that efforts are being made to translate growth into improved living standards.

Referring to recent challenges, the President pointed to external shocks including US tariffs, the impact of Cyclone Ditwah, and tensions in the Middle East, noting that these factors had caused disruptions and delays. However, he said the Government had acted swiftly to safeguard macroeconomic and social stability.

With less than a year remaining under the current EFF programme, President Dissanayake said the Government remains focused on completing the reforms while ensuring economic gains reach all citizens. He added that adherence to IMF parameters was essential for long-term sustainability and that reforms were being implemented in a way that avoids unnecessary burdens on the public.

The President also highlighted what he described as a strong and cooperative relationship between Sri Lanka and the IMF, saying mutual flexibility had helped keep the programme on track.

The discussions concluded with both sides reaffirming their commitment to continue close cooperation to ensure successful implementation of the EFF programme and to achieve lasting economic stability.

The IMF delegation included senior officials from the Asia and Pacific Department and the Sri Lanka mission team, while the Sri Lankan side included officials from the Ministry of Finance, Central Bank, and the President’s economic advisory team.