The International Monetary Fund (IMF) has commended Sri Lanka’s resilience and the government’s progress in implementing its economic recovery programme, according to the President’s Media Division.
This was conveyed when an IMF delegation led by Sonali Jain-Chandra, the Deputy Director of the IMF’s Asia and Pacific Department, met President Anura Kumara Dissanayake at the Presidential Secretariat this morning (30),
The meeting marked the conclusion of the IMF delegation’s visit to Colombo from 24 to 30 June, during which recent macroeconomic developments and the implementation of reforms under the Extended Fund Facility (EFF) arrangement were reviewed, the PMD said in a statement.
The PMD stated the IMF praised the government’s economic programme and noted that Sri Lanka has made greater progress than many other countries implementing IMF-supported programmes. The delegation commended the government for maintaining macroeconomic stability despite a series of external shocks and for remaining firmly committed to its reform agenda.
The IMF acknowledged that, notwithstanding numerous challenges, Sri Lanka has continued to pursue reforms with determination and assured the Government of its continued support as the country advances its economic recovery.
The delegation informed President Dissanayake that Sri Lanka’s programme performance will be formally assessed during the Seventh Review of the EFF arrangement, expected to take place in September. The rest of the commitments to be fulfilled under the programme, is expected to be completed ahead of the review.
The IMF also emphasised that sustaining the momentum of reforms will be critical to navigating ongoing external challenges, preserving fiscal and external sustainability, strengthening resilience and securing strong, durable and inclusive economic growth.
President Dissanayake reiterated that his government remains fully committed to implementing the IMF programme, not because of external pressure, but because it firmly believes that the reforms are essential to leading Sri Lanka out of economic hardship and building a stronger and more prosperous nation, the PMD stated.
The President stressed that, while economic stabilisation remains a key priority, the ultimate objective of the government is to ensure that the benefits of economic recovery are experienced directly by the people.
He noted that every effort is being made to ensure that economic growth translates into tangible improvements in livelihoods and living standards. Referring to the challenges encountered during implementation, President Dissanayake highlighted the adverse impact of external shocks, including the US tariffs, the devastation caused by Cyclone Ditwah and the conflict in the Middle East, all of which created disruptions and delays. Nevertheless, he noted that the government had acted swiftly to safeguard macroeconomic and social stability and continues to do everything possible to keep the country firmly on the path to recovery.
With less than a year remaining under the current EFF arrangement, the President affirmed that the government remains focused on successfully completing the programme while ensuring that the benefits of economic growth and stability reach all citizens.
He further stated that adherence to IMF parameters is necessary for achieving sustainable long-term economic progress and that the government is implementing the programme in a manner that maximises public benefit without placing unnecessary burdens on the people.
President Dissanayake also highlighted the close and constructive relationship between the government and the IMF, noting that both sides have demonstrated considerable flexibility throughout the implementation process, the IMF said.
He observed that this mutual understanding and cooperation have enabled the reform programme to proceed smoothly and without major obstacles.
The discussions concluded with a reaffirmation of the shared commitment of the government of Sri Lanka and the IMF to continue working closely together to ensure the successful implementation of the Extended Fund Facility programme and to secure lasting economic stability and prosperity for the country.
The IMF delegation included Sonali Jain-Chandra, the Deputy Director of the IMF’s Asia and Pacific Department; Evan Papageorgiou, the Mission Chief; Martha Woldemichael, the IMF Resident Representative; Enrique Flores Curiel; Ursula Wiriadinata; Yorbol Yakhshilikov; Maksym Markevych; and Manavee Abeyawickrama.
Representing the Government of Sri Lanka were Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Governor of the Central Bank of Sri Lanka Dr. P. Nandalal Weerasinghe; Secretary to the Treasury - Ministry of Finance & Planning and Economic Development Dr. Harshana Suriyapperuma, Senior Economic Adviser to the President Duminda Hulangamuwa, Senior Additional Secretary to the President G.M.R.D. Aponsu, and several others.
(PMD)
