March 04, Colombo (LNW): Peter Breuer, the Senior Mission Chief for Sri Lanka at the International Monetary Fund (IMF), has praised the nation’s remarkable economic recovery in recent years, emphasising that as economic opportunities continue to expand, both income levels and living standards will rise, making it more appealing for people to stay in Sri Lanka rather than emigrate.
Breuer was speaking at a press conference following the completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) programme.
He noted that the country’s reserves have significantly improved under the EFF, reaching nearly half of the set programme targets—a performance Breuer described as “impressive.”
Reflecting on Sri Lanka’s transformation, Breuer highlighted the striking contrast between the country’s current economic outlook and the dire situation he witnessed when he first arrived in Sri Lanka in June 2022.
At that time, the country was grappling with severe shortages of essential goods, with long queues for fuel, cooking gas, food, and medicine. Economic activity had all but come to a standstill, with the nation experiencing a substantial contraction in its economy, losing about 10 per cent of its activity due to the crisis.
However, in a remarkably short period since the implementation of the IMF-backed programme in 2023, Sri Lanka has recovered approximately 40 per cent of the economic activity it lost in the previous five years. Breuer noted that the most recent growth figure of 5.5 per cent further underscored the nation’s significant rebound.
“It’s clear that Sri Lanka has made tremendous strides in a short period, and this recovery will positively impact crucial factors like poverty reduction,” he said.
Breuer also pointed out that as Sri Lanka continues to bounce back, it will not only boost incomes but also create more opportunities for its citizens.
“As the economy stabilises and growth accelerates, people will be more likely to stay in Sri Lanka, finding new prospects within the country rather than seeking opportunities abroad. Those who have emigrated will also be drawn back by the renewed economic potential,” he concluded.
