Abandoning Sri Lanka’s International Monetary Fund (IMF) programme after 2027 could push the country back into an economic crisis, the ‘Dinana Dakuna’ collective has warned.

In a statement, the collective said Sri Lanka’s economic recovery remains fragile following the country’s recent economic crisis and stressed the need to maintain the current international financial framework.

The group claimed that certain sections of the government were considering ending Sri Lanka’s structural engagement with the IMF when the current Extended Fund Facility (EFF) programme concludes in March 2027.

It described the move as a “dangerous ideological gamble”, warning that political rhetoric should not take precedence over economic discipline and institutional reforms.

The collective also rejected the view that Sri Lanka could pursue an independent economic path without the institutional discipline associated with the IMF programme, saying such an approach would overlook the country’s fiscal realities.

It further warned that a return to politically driven policies and what it described as unsustainable subsidies could undermine the economic stability achieved following the crisis and increase the risk of renewed financial difficulties.

The group also criticised certain economic relief measures proposed for the upcoming Budget, describing government expenditure arising from such measures as potentially amounting to “disguised fiscal waste”.

The statement called for continued attention to fiscal discipline and economic reforms as Sri Lanka seeks to consolidate its recovery.