What's Next for Sri Lanka? IMF Says Support Will Continue

COLOMBO (News 1st); The International Monetary Fund (IMF) has reaffirmed its readiness to continue supporting Sri Lanka beyond the conclusion of the current IMF-supported program, signaling that a range of assistance options remain available as the country continues its economic recovery.

Speaking on Sri Lanka's progress under the reform program, IMF Deputy Director for the Asia and Pacific Department Sonali Jain-Chandra said the Fund remains committed to supporting Sri Lanka in whatever manner the country considers appropriate in the future.

She noted that any future engagement would depend on the preferences of the Sri Lankan authorities, with options ranging from a new financing arrangement to policy advice, surveillance support and capacity development programs.

Jain-Chandra stressed that discussions on future engagement would take place in due course, adding that the IMF would remain a committed partner to Sri Lanka regardless of the form that support may take.

Her remarks come as Sri Lanka enters the final phase of its current IMF program, which is scheduled to conclude in March next year.

While looking ahead to future cooperation, she emphasized that important work remains under the existing arrangement. According to Jain-Chandra, the staff-level agreement on the Seventh Review of the program reached between the IMF and Sri Lankan authorities in early October, is expected to be considered by the IMF Executive Board in the coming weeks.

She added that a further review mission will take place before the program expires, making it essential for Sri Lanka to maintain its focus on macroeconomic stability and the continuation of ongoing reforms.

The IMF official also highlighted the significant gains achieved under the program, noting that Sri Lanka's macroeconomic situation has improved substantially since the height of the economic crisis.

She said fiscal performance has been particularly strong, with government revenue having doubled during the reform period, while debt restructuring efforts are now largely complete.

According to Jain-Chandra, Sri Lanka has also recorded positive economic growth for 11 consecutive quarters following the severe contraction experienced during the crisis.

Beyond economic indicators, she noted that the country has implemented important structural reforms, including governance-related measures that have been a central component of the IMF-supported program.

Jain-Chandra said these achievements demonstrate that the reform program has been delivering strong results, while underscoring the importance of consolidating those gains and ensuring that the progress made in recent years is sustained.

The IMF's latest remarks are likely to provide further confidence to investors and development partners as Sri Lanka continues its recovery journey, with the Fund signaling that its partnership with the country is expected to extend well beyond the current program.