Sri Lanka’s Macroeconomic Policy Reforms Bear Fruit: IMF Sees Strong Progress

The IMF has acknowledged Sri Lanka's significant progress in macroeconomic reforms, anticipating agreements with external creditors. The second review of the USD 2.9 billion bailout program shows strong performance despite ongoing reforms. The IMF Board will meet on June 12 to discuss this progress and the Article IV Consultation.

In a recent press conference, the International Monetary Fund (IMF) has acknowledged substantial progress in Sri Lanka's macroeconomic policy reforms, forecasting imminent agreements with external commercial creditors. This comes as part of the second review of the USD 2.9 billion bailout program, affirming the country’s commendable economic strides.

Julie Kozack, Director of the IMF Communication Department, highlighted Sri Lanka's strong performance in meeting most quantitative and structural conditionality for the program review, despite delays. Notably, key achievements include rapid disinflation, robust reserve accumulation, and early signs of economic growth—all while maintaining financial stability.

The IMF’s Executive Board will convene on June 12 to discuss the second review alongside the Article IV Consultation, underscoring the organization's recognition of Sri Lanka's effective debt restructuring and significant macroeconomic progress.