The International Monetary Fund (IMF) and the Sri Lankan authorities have reached a staff-level agreement on economic policies to complete the Fifth Review of Sri Lanka’s reform program, supported by the IMF’s Extended Fund Facility (EFF).

Once approved by the IMF Executive Board, Sri Lanka will gain access to approximately US$347 million in financing.

The IMF noted that Sri Lanka’s reform progress has been strong, with inflation stabilizing, reserves increasing, and economic growth and revenue collection exceeding expectations.

The Fund emphasized that continuing structural and fiscal reforms is crucial to maintaining stability, strengthening recovery, and improving resilience to global challenges.

The IMF mission, led by Evan Papageorgiou, visited Sri Lanka from September 24 to October 9, 2025, engaging with key government officials, the Central Bank, and other stakeholders.

In its statement, the IMF highlighted Sri Lanka’s commendable achievements, including 4.8% economic growth in the first half of 2025, stronger fiscal performance, and progress in debt restructuring.

The Fund also called for sustained efforts in tax compliance, public financial management, state-owned enterprise reforms, and governance improvements to ensure lasting economic stability and transparency.

Upon completion of the review, IMF financial support to Sri Lanka under the EFF will total about US$2.04 billion.