IMF: Sustained Reforms Key to Sri Lanka's Economic Stability

COLOMBO (News 1st); The International Monetary Fund has said that Sri Lanka's economic recovery is gaining momentum.

Julie Kozack, Director of the IMF’s Communications Department noted reforms in Sri Lanka are bearing fruit.

"Inflation remains low in Sri Lanka. Revenue collection on the fiscal side is improving, and international reserves are continuing to accumulate. Economic growth reached 5% in 2024, and that was after two years of economic contraction. And we do expect the recovery to continue in 2025 in Sri Lanka. These are all very positive developments for Sri Lanka and for the people of Sri Lanka," she said in response to a question posed by News 1st's Zulfick Farzan during a press briefing held in Washington DC on Thursday (27).

She warned that Sri Lanka's economy still does remain vulnerable, and therefore it is critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved."

She also added that the International Monetary Fund has made available to Sri Lanka USD 334 Mn, as part of the Extended Fund Facility program.

"So first, let me just step back on Sri Lanka. First, I'll say that on Friday, February 28th, the IMF Executive Board approved the third review under the EFF arrangement for Sri Lanka, and this provided the country with immediate access to $334 million of support. Once the board approved that third review, the $334 million was made available to Sri Lanka to support its economic policies and reforms. And with this $334 million, it brings total financial support from the IMF to Sri Lanka to $1.34 billion," she explained.