IMF Mission Praises Sri Lanka’s Economic Progress

Colombo, August 2, 2024 (LankaXpress) – An International Monetary Fund (IMF) mission led by Senior Mission Chief Peter Breuer concluded its visit to Sri Lanka today, commending the country’s economic reform program. The mission, which ran from July 25 to August 2, 2024, noted that Sri Lanka’s economic recovery is progressing well, with real GDP growing 5.3% year-on-year in Q1 2024 and inflation remaining below the Central Bank of Sri Lanka’s target.

Breuer emphasized the need for continued reform to sustain economic gains, highlighting the importance of raising fiscal revenues and maintaining macroeconomic stability. The IMF supports Sri Lanka’s efforts to manage debt and reform tax administration, and commended the recent parliamentary approval of key fiscal legislation.

The mission also praised the authorities’ progress in debt restructuring and urged swift resolution of remaining issues to restore investor confidence. The next formal assessment of Sri Lanka’s progress under the IMF program will take place during the third review of the Extended Fund Facility (EFF), to be scheduled after upcoming presidential elections.

The IMF team held discussions with key government officials, including President Ranil Wickremesinghe and Central Bank Governor Dr. P. Nandalal Weerasinghe. They also engaged with various stakeholders, including Parliamentarians and civil society representatives.

The IMF reaffirmed its commitment to supporting Sri Lanka’s efforts toward a full and inclusive economic recovery.