October 26, Colombo (LNW): The International Monetary Fund (IMF) announced that Sri Lanka has made substantial progress in its reform initiatives and expressed optimism for a swift approach to the third review of the Extended Fund Facility (EFF). This positive outlook was shared by Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, during a press briefing at IMF headquarters in Washington.
“We are encouraged by what we have heard so far and are hopeful for quick progress toward the third review,” Srinivasan said, noting that inflation in Sri Lanka is on the decline. He highlighted that the country has made “hard-won gains” through committed reform efforts, a consensus supported by the new administration’s intent to protect and build upon these achievements.
Srinivasan recently led a high-level team to Colombo for discussions with the new government, reporting “productive discussions” that are continuing this week during the IMF’s annual meetings. He noted that growth in Sri Lanka has been positive over the past four quarters, with the IMF program addressing priorities like social protection.
The IMF Director also confirmed that Sri Lanka has reached agreements with its official creditors and has an agreement in principle with private creditors. The next step is securing a formal agreement with all creditors, which Srinivasan described as a “significant step forward.” He emphasized that while progress has been made, continued reforms are essential for Sri Lanka to achieve a robust and sustainable economic recovery.
