IMF Chief commends ongoing economic stabilization efforts

The Managing Director of the International Monetary Fund (IMF), Dr. Kristalina Georgieva has commended the government’s efforts in stabilizing the country’s economy and in managing recent economic and natural shocks.

Dr. Kristalina Georgieva noted that Cyclone Ditwah had caused severe impacts, especially on economically vulnerable communities, underscoring the importance of targeted support and resilience-building measures.

She made these remarks during a meeting with Prime Minister Dr. Harini Amarasuriya at Temple Tress.

During the meeting, the Prime Minister expressed appreciation for the IMF’s continued support to Sri Lanka, particularly in the aftermath of Cyclone Ditwah. Dr. Kristalina Georgieva further emphasized that real economic recovery and development must directly benefit economically vulnerable groups and ensure inclusive growth, highlighting the need for Sri Lanka to attract quality and sustainable investments, particularly in the tourism sector.

Both sides discussed the importance of reforming the education system to focus not only on knowledge acquisition but also on skills development and employability.

Meanwhile, IMF Managing Director Kristalina Georgieva also held discussions with President Anura Kumara Dissanayake at the Presidential Secretariat.

The meeting focused on Sri Lanka’s economic recovery, post-disaster assistance and the next phase of the IMF-supported reform programme.

Meanwhile, the IMF Managing Director has expressed solidarity with Sri Lanka following recent natural disasters, noting that just as the economy was recovering, a devastating cyclone had affected several regions. She observed that affected rural communities require renewed economic dynamism and emphasised the importance of timely assistance for housing, land rehabilitation and improved livelihood opportunities.

She has also acknowledged the swift response of the government in extending support to affected communities and noted that the IMF had also provided over US$200 million in emergency financing to assist recovery efforts.

Furthermore, while noting the repeated setbacks Sri Lanka has faced in recent years, Managing Director Dr. Kristalina Georgieva expressed confidence that the country is poised to achieve higher growth, provided that necessary structural reforms are initiated and sustained.

The IMF Chief made this assertion during a meeting held with the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe at the Central Bank premises.

Managing Director Dr. Kristalina Georgieva visited the Central Bank yesterday as part of her official engagements while in Sri Lanka.

The visit coincides with the 75th anniversary of Sri Lanka’s IMF membership as well as the Central Bank of Sri Lanka’s 75th anniversary.

At a meeting held at the Central Bank premises, Governor Weerasinghe expressed sincere gratitude to the IMF Chief and her team for the steadfast support provided under the current Extended Fund Facility (EFF) and for actively facilitating the completion of the debt restructuring process, helping the country recover from the unprecedented economic hardship.

Dr. Weerasinghe also expressed gratitude to the IMF for the extensive technical assistance provided across multiple areas, including monetary policy and modelling, macroprudential analysis, and financial sector policies.

Meanwhile, Managing Director Geogeiva recognised Sri Lanka’s performance under the current IMF programme as a success story.

The MD also acknowledged the Central Bank’s role in restoring macroeconomic stability following the economic crisis.

While noting the repeated setbacks Sri Lanka has faced in recent years, IMF Managing Director Dr. Kristalina Georgieva expressed confidence that the country is poised to achieve higher growth, provided that necessary structural reforms are initiated and sustained.