IMF urges Govt. to sustain reform momentum for economic stability

The International Monetary Fund (IMF) has urged the government and Sri Lankan authorities to continue the ongoing reform agenda, including improvements in governance and monetary policy.

Speaking at a briefing held in Colombo, IMF Mission Chief for Sri Lanka Evan Papageorgiou said maintaining reform momentum is essential for ensuring the country’s long-term stability.

He noted that external shocks will continue to occur, but stressed that Sri Lanka’s priority should remain focused on sustaining economic reforms.

Papageorgiou also said that policy responses taken so far in relation to the ongoing Middle East conflict have been appropriate, while emphasizing the importance of continued commitment to the reform process going He confirmed that discussions with Sri Lankan authorities on the seventh review of the Extended Fund Facility (EFF) arrangement will commence later this year. The eighth and final review is expected to take place before March 2027, when the current programme concludes.

Papageorgiou said several matters were discussed during the IMF team’s ongoing interim visit to Sri Lanka, noting that progress under the IMF-supported programme will be formally assessed during the upcoming seventh review.

He further stated that timely actions by the Sri Lankan authorities amid the Middle East conflict have helped preserve macroeconomic and social stability. He added that sustaining reform momentum remains critical to navigating external shocks while maintaining fiscal and external sustainability, strengthening resilience, and achieving strong, durable, and inclusive growth.