IMF Staff-Level Agreement on Fifth and Sixth Reviews Reached, Unlocking $700 Million for Sri Lanka

COLOMBO (News 1st); IMF staff and the Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the combined Fifth and Sixth Reviews of Sri Lanka’s reform program supported by the International Monetary Fund’s Extended Fund Facility (EFF).

Once the review is approved by the IMF Executive Board, Sri Lanka will gain access to approximately US$700 million in financing.

The agreement reflects continued progress under the reform program, with economic measures implemented by the Sri Lankan authorities helping to support a sustained recovery.

Official reserves have continued to accumulate, while real gross domestic product (GDP) growth and revenue mobilization have both exceeded expectations, underscoring stronger-than-anticipated economic performance.

Despite these gains, Sri Lanka remains significantly exposed to external risks. The ongoing conflict in the Middle East poses potential challenges for the economy, while the country also faces the pressing task of rebuilding following the impact of Cyclone Ditwah.

Against this backdrop, advancing economic reforms has become even more critical to safeguard macroeconomic stability and ensure the recovery remains on track.

The IMF emphasized the importance of building economic resilience to better withstand exogenous shocks, particularly in an uncertain global environment.