A senior IMF official says the agency is committed to supporting Sri Lanka beyond ongoing bailout programme

A senior IMF official says the agency is committed to supporting Sri Lanka beyond ongoing bailout programme
The International Monetary Fund (IMF) says it remains committed to supporting Sri Lanka as the country continues its economic recovery and approaches the end of its current programme.

Sonali Jain-Chandra, a senior IMF official, said it was up to Sri Lankan authorities to decide whether to request another programme.

IMF support could take several forms, including a new financing arrangement, policy advice or capacity development, she said.

Programme background

Sri Lanka entered into an Extended Fund Facility (EFF) arrangement with the IMF in March 2023 for approximately US$3 billion over 48 months.

Jain-Chandra said two reviews remained, with a staff-level agreement on the seventh reached in early October and Executive Board consideration expected in the coming weeks.

Another review mission would take place before the programme expires in March 2027, she said.

Economic progress

Jain-Chandra said Sri Lanka’s macroeconomic situation had improved significantly, with particularly strong fiscal performance.

The revenue ratio had doubled, debt restructuring was largely complete and growth had remained positive for 11 consecutive quarters following the crisis trough, she said.

She also highlighted structural improvements, including governance reforms, which she described as a core part of the programme.

Reform priorities

Jain-Chandra stressed the importance of maintaining the focus on macroeconomic stabilisation and consolidating reform gains.

Future engagement would be discussed with the authorities, with several forms of IMF support available beyond the current programme.

“We stand ready to support Sri Lanka in any way that they desire as appropriate,” she said, adding that the IMF would remain a committed partner.