October 20, Colombo (LNW): The International Monetary Fund (IMF) has called on Sri Lanka to remain steadfast in implementing its ongoing economic reform programme, emphasising that sustained commitment is key to securing long-term economic stability and growth.
Speaking during a media briefing in Washington, D.C., where the IMF presented its latest regional economic outlook, Deputy Director Thomas Helbling acknowledged the considerable progress Sri Lanka has made since emerging from its worst economic crisis in recent history.
He noted that following a deep contraction, the country saw a robust rebound last year, recording an impressive growth rate of 5 per cent, with growth projections for the current and coming year estimated at around 4.2 per cent. Looking ahead, Sri Lanka’s potential growth rate is expected to settle around 3 per cent.
Helbling stressed that these gains are largely the result of the government’s determination to implement far-reaching reforms under the IMF-supported programme. “Sri Lanka has made meaningful strides, but to secure these achievements and unlock further progress, it is crucial to maintain momentum. Continued implementation will allow the country to reap the full benefits of the reforms,” he said.
He also highlighted the importance of safeguarding macroeconomic stability through institutional strengthening, prudent fiscal policy, and improved public sector management. “Key to this journey will be fiscal consolidation and ensuring the financial sustainability of state-owned enterprises. These areas carry significant fiscal risks if left unaddressed,” Helbling explained, adding that reforming public investment and maintaining discipline in public finances are central to building a stable economic foundation.
Electricity pricing reforms were also flagged as a critical area under the programme, particularly the commitment to cost recovery. Helbling acknowledged that price adjustments must account for external variables such as energy markets and climate impacts, but reiterated the importance of aligning tariffs with actual costs to reduce pressure on public finances.
He noted that Sri Lanka’s government has demonstrated strong support for these reforms thus far and encouraged authorities to “stay the course,” regardless of external challenges or political pressures.
Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, echoed this sentiment, commending Sri Lanka for the difficult choices already made. “The country has come a long way from where it stood just a few years ago. The difficult part has been done. Now, it is about staying committed to the path of reform. The benefits are already visible, and more will follow with consistency and resolve,” he said.
As the global economic environment remains uncertain, the IMF’s message to Sri Lanka was clear: perseverance in reform is not just advisable — it is essential to protect and expand the hard-won progress already made.
