The International Monetary Fund (IMF) says the economy in Sri Lanka still remains vulnerable.
Julie Kozack, Director of the Communications Department at the IMF said that reforms in Sri Lanka are bearing fruit.
“The economic recovery is gaining momentum. 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 percent 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 at a media briefing in Washington.
Kozack said that the 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.
On February 28th, the IMF Executive Board approved the Third Review under the EFF (Extended Fund Facility) 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
