IMF reviewing Sri Lanka’s 2026 Budget as US$ 347M tranche expected ‘in coming weeks’
November 14, 2025 08:55 am
The International Monetary Fund (IMF) is currently assessing Sri Lanka’s recently announced 2026 budget—including its ambitious 7 percent growth target—to determine whether it aligns with the conditions of the country’s ongoing bailout program.
At a press briefing yesterday (13), IMF Communications Director Julie Kozack said staff are “reviewing the published budget documents to evaluate whether the 2026 budget is in line with the program parameters,” adding that this review will play a key role in the Fund’s next decision on Sri Lanka.
The IMF earlier reached a staff-level agreement with Sri Lankan authorities on October 9 for the Fifth Review of the country’s Extended Fund Facility (EFF).
Upon approval by the Executive Board, Sri Lanka will be able to access about US$347 million. Kozack said the Board meeting is expected to take place “in the coming weeks.”
“Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about U.S. $347 million in financing. We do expect the Board meeting to take place in the coming weeks,” she said.
Beyond the budget, Kozack emphasized that structural reforms remain central to strengthening Sri Lanka’s long-term growth prospects. Key areas highlighted include:
• Continued trade liberalization and related reforms
• Streamlining foreign direct investment (FDI) regulations
• Accelerating governance reforms, particularly procurement reform and strengthening the AML/CFT framework
• Enhancing social protection by deepening the Welfare Benefit Payments scheme
“These reforms will be key for further increasing Sri Lanka’s potential growth,” she said, stressing the need to continue protecting vulnerable populations as the country stabilizes its economy.
“So, those are some of the reforms that we’ll be looking for to boost Sri Lanka’s growth,” she added.
The IMF’s assessment of the budget and reform progress will feed directly into the upcoming Board deliberations, which will determine the release of the next tranche of bailout financing.
