IMF Urges Sri Lanka to Sustain Reform Momentum

COLOMBO (News 1st); The International Monetary Fund says that sustaining reform momentum is critical for Sri Lanka.

Julie Kozack, the Director of the IMF Communications Department responding to a question posed by News 1st's Zulfick Farzan at a press conference in Washington  DC, said that Sri Lanka's program performance is strong, and reform efforts are bearing fruit in terms of reviving economic growth, lowering inflation, boosting reserves, and improving revenue mobilization.

"However, as we have said before, important vulnerabilities and uncertainties remain and this means that sustaining reform momentum is critical," she warned.

On June 12, 2024 the IMF Executive Board completed the 2024 Article IV consultation, and the second review under the EFF program for Sri Lanka providing the country with access to about USD 336 Million to support its economic policies and reforms

A high-level team led by the IMF's Director of the Asia - Pacific Department Krishna Srinivasan is currently visiting Colombo, to meet with President Dissanayake and the new economic team.

"The delegation is discussing with the authorities the latest economic developments and their economic reform objectives," said Julie Kozack.

She noted that the dates for the third review under the EFF program will be announced in due course.

She also noted that Sri Lanka and international bondholders representatives reaching an agreement in principle, subject to confirmation of comparability treatment by Sri Lanka's official creditor committee, represents some significant progress in Sri Lanka's debt restructuring process.