May 17, Colombo (LNW): The International Monetary Fund (IMF) has commended Sri Lanka’s overall program performance as strong, according to Julie Kozack, Director of Communications at the IMF. Speaking to reporters in Washington D.C. on Thursday (16), Kozack highlighted key achievements and outlined the necessary steps for the continuation of Sri Lanka’s economic recovery.
Kozack noted that for the IMF Executive Board to complete its review, two critical components are required: the implementation of agreed prior actions by Sri Lankan authorities, and the completion of the financing assurances review. This review will verify contributions from multilateral partners and assess progress in debt restructuring.
Sri Lanka’s macroeconomic policies are showing positive outcomes, including a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, all while maintaining financial system stability. These commendable results mark significant strides in the country’s economic recovery.
Looking forward, the primary focus for Sri Lanka is to conclude negotiations with external private creditors and implement agreements with official creditors. Kozack acknowledged the challenges in reaching a consensus with external bondholders, noting that initial debt restructuring negotiations ended in mid-April without an agreement. However, she emphasized that discussions are ongoing with the goal of reaching an agreement in principle.
