“Let’s Make This The Last IMF program Sri Lanka will need” - Says IMF’s Gita Gopinath

COLOMBO (News 1st); As Sri Lanka navigates the final stages of its current International Monetary Fund (IMF) program, First Deputy Managing Director Dr. Gita Gopinath sent a powerful message of both recognition and resolve: this must be the last time the country turns to the IMF for economic rescue.

“The IMF will remain a steadfast partner as Sri Lanka pursues stable and inclusive growth that improves the lives of all citizens and future generations,” she said. “This time must be different. As President Dissanayake has said, let us ensure this is the last IMF program Sri Lanka will need. We agree, and believe this is possible if Sri Lanka stays the course.”

Speaking at a high-level policy forum in Colombo, Dr. Gita Gopinath praised the Sri Lankan people for their resilience and sacrifice in navigating one of the most severe economic crises in the country’s history. At the same time, she issued a clear and urgent call to maintain reform momentum and avoid the pitfalls of the past.

“Let us be clear: none of the achievements thus far would have been possible without the courage and sacrifice of the Sri Lankan people,” Gopinath stated. “The crisis was costly and painful, particularly for the poor.”

Gopinath acknowledged the significant burden borne by ordinary citizens as the government implemented a series of difficult but necessary reforms. These included adjustments in taxation, the removal of unsustainable subsidies, and the restoration of cost-reflective energy pricing—measures that, while essential, have tested the social fabric of the nation.

“These are difficult measures,” she said. “They test the social fabric. And yet, they are the foundation of a more resilient future. That is why we must now turn our focus from crisis response to sustainable recovery. There is a lot that is still needed.”

The IMF official emphasized that Sri Lanka stands at a critical juncture. While the country’s reform program has delivered strong results thus far, she warned that history offers sobering lessons. Of the 16 IMF programs Sri Lanka has engaged in over the years, about half ended prematurely, often due to reform fatigue and political backsliding.

“This is why there is no room for policy errors,” Gopinath cautioned. “As the IMF Managing Director noted during our Spring Meetings in April: the choice facing countries today is between reform and regret. Between building buffers—or risking future crises.”

She underscored the importance of sustaining reform momentum in a manner that is both inclusive and accountable. Public dialogue, transparency, and civil society engagement, she said, are essential to ensuring that policies are not only effective but also equitable.

“Public dialogue matters. Transparency matters. Engaging civil society and listening to diverse voices—not just in Colombo, but across the island—will help ensure that policies are responsive and responsible,” she said. “This conference is exactly the kind of platform that can foster such engagement. It is a space to reflect, to challenge assumptions, and to build consensus.”

Gopinath reaffirmed the IMF’s commitment to supporting Sri Lanka’s journey toward stable and inclusive growth, emphasizing that this moment must mark a turning point in the country’s economic trajectory.