By: Isuru Parakrama
April 20, Colombo (LNW): Sri Lanka has formally commenced a new round of discussions with the International Monetary Fund (IMF) in Washington, as part of the ongoing engagement under the Extended Fund Facility (EFF) arrangement aimed at stabilising the island’s economy.
The latest negotiations mark the fourth review of the programme, which has been instrumental in providing financial and technical support during one of the country’s most turbulent economic periods in recent history.
The Ministry of Finance has confirmed that a senior-level delegation, including representatives from both the Ministry and the Central Bank, has travelled to the United States to engage in what are expected to be comprehensive and technically detailed deliberations.
The team is tasked with reviewing policy progress, structural reforms, and fiscal consolidation targets agreed upon during earlier phases of the EFF.
Deputy Minister of Finance Prof. Anil Jayantha Fernando noted that the review sessions are taking place in a critical global and regional economic context, where maintaining macroeconomic discipline and advancing domestic reforms remain essential for long-term recovery and resilience.
These talks will assess Sri Lanka’s performance in meeting previously agreed benchmarks, particularly in areas such as public financial management, tax reform, debt restructuring, and governance improvements.
The outcome will determine the release of the next tranche of financial assistance, which could be pivotal in maintaining investor confidence and sustaining foreign reserves.
In recent months, the government has accelerated efforts to fulfil IMF conditions, including controversial but necessary fiscal measures, such as tax increases and the rationalisation of public spending.
These reforms, though often politically unpopular, are widely seen as critical for regaining debt sustainability and rebuilding international credibility.
