The International Monetary Fund (IMF) has expressed readiness to support Sri Lanka through future policy advice, capacity development, or a new financing arrangement as the island nation enters the final months of its Extended Fund Facility (EFF) program.
Speaking at a press conference today (15), during the IMF and World Bank Group Annual Meetings in Bangkok, Sonali Jain-Chandra, Deputy Division Chief in the IMF's Asia and Pacific Department, highlighted Sri Lanka's significant economic recovery. Following the trough of the economic crisis, Sri Lanka has recorded positive economic growth for 11 consecutive quarters.
Jain-Chandra noted that Sri Lanka’s fiscal performance remains very strong, highlighted by a doubling of the national revenue ratio and substantial progress in debt restructuring, which is now largely complete. Structural and governance reforms implemented under the program have also bolstered the country's economic stability.
The IMF's assessment follows questions regarding Sri Lanka's post-program trajectory as it navigates structural vulnerabilities. With major debt repayments resuming in 2028 and ongoing exposure to climate and oil shocks, questions remain over whether the country will seek another program or technical arrangement.
With less than five months remaining under the current EFF agreement, two reviews remain to be completed. IMF staff and Sri Lankan authorities reached a staff-level agreement on the seventh review in early October 2026, which will be submitted to the IMF Executive Board in the coming weeks. A final review mission is slated to take place before the program expires in March 2027.
Regarding future collaboration, Jain-Chandra stated that requesting a new fund arrangement remains the sole prerogative of Sri Lankan authorities. However, she affirmed that the IMF stands ready to assist through flexible channels, including granular policy advice during surveillance, capacity development, or new financial arrangements.
"The Fund will remain a very committed partner to Sri Lanka," Jain-Chandra emphasized, noting that the immediate focus remains on consolidating reform gains and sustaining macroeconomic stabilization.
