April 02, Colombo (LNW): A visiting team from the International Monetary Fund engaged in high-level discussions with President Anura Kumara Dissanayake on Wednesday, focusing on the country’s ongoing reform agenda and its progress under the Extended Fund Facility programme.
The meeting, which took place at the Presidential Secretariat, comes at a crucial juncture as Sri Lanka prepares for upcoming programme reviews. Talks centred on recent economic developments, with particular attention given to growth trends, fiscal performance, and the strengthening of foreign reserves.
IMF representatives acknowledged the strides made in stabilising the economy, noting that Sri Lanka has shown signs of recovery after a prolonged period of financial strain. They observed that improvements in revenue collection and macroeconomic management have helped place the country on a firmer footing.
However, both sides recognised that challenges remain. Discussions highlighted the importance of sustaining reform momentum while safeguarding overall stability. External pressures, including volatility linked to unrest in the Middle East, were identified as potential risks—especially in relation to energy costs and fuel imports.
Sri Lankan officials briefed the delegation on measures being taken to cushion the impact of reforms, particularly for vulnerable communities. They emphasised that policy decisions are being carefully calibrated to balance fiscal discipline with social protection.
President Dissanayake reiterated that the government has thus far met key programme benchmarks, adding that maintaining stability must go hand in hand with minimising hardship for the public. He stressed that the reform process should remain people-focused, even as structural adjustments continue.
The IMF delegation, led by Evan Papageorgiou, is expected to continue engagements with senior policymakers as part of its assessment of Sri Lanka’s economic trajectory and future commitments under the programme.
