IMF Team Emphasizes Key Reforms for Sri Lanka’s Economic Recovery
An International Monetary Fund (IMF) team recently completed its mission to Sri Lanka, highlighting the importance of maintaining economic reform momentum and timely implementation of commitments for the country to overcome its economic crisis. The team discussed recent economic developments, fiscal efforts for revenue mobilization, and ongoing debt restructuring discussions with creditors. Achieving timely restructuring agreements with creditors was deemed essential for restoring debt sustainability. The IMF team stressed the need to uphold central bank independence, improve governance, and protect the vulnerable. While tentative signs of improvement were observed, the macroeconomic and policy environment remained challenging.
The team commended Sri Lanka’s efforts in meeting program commitments and announced a formal assessment in September 2023. The team engaged with various stakeholders, including government officials, opposition parties, civil society organizations, think tanks, and development partners. Continued collaboration between Sri Lanka and the IMF was encouraged.