The International Monetary Fund (IMF) says Sri Lanka’s economic reform program continues to make “impressive progress,” with the country showing strong signs of recovery under the Extended Fund Facility (EFF) arrangement.

Speaking at a press briefing in Washington on October 2, IMF Communications Director Julie Kozack said Sri Lanka’s inflation remains low, government revenue collection has improved, and international reserves continue to rise. 

She noted that the post-crisis economic rebound has been significant, with growth reaching 5 percent in 2024.

“The revenue-to-GDP ratio in the budget improved to 13.5 percent of GDP from 8.2 percent in 2022, which is also a significant increase, although still work to be done,” Kozack stated, adding that the country’s debt restructuring process is “nearly complete.”

The IMF Board completed the Fourth Review of Sri Lanka’s EFF arrangement on July 1, releasing US$350 million in support and bringing total disbursements to US$1.74 billion.

Kozack confirmed that an IMF mission is currently in Sri Lanka conducting the Fifth Review of the EFF. 

“Given that the team is now currently in discussions with the authorities, I won’t say more other than to say that, of course, the team will communicate at the end of the mission,” she said.

She added that program performance remains strong and that the Sri Lankan government is “committed to the program’s objectives,” which include restoring macroeconomic stability, ensuring debt sustainability, and promoting structural reforms to boost growth.