IMF, Sri Lanka make progress in 4th review of reform program

COLOMBO, April 25 (Xinhua) -- International Monetary Fund (IMF) staff and the Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the Fourth Review of Sri Lanka's reform program supported by the IMF's Extended Fund Facility (EFF), the IMF said in a statement on Friday.

Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about 344 million U.S. dollars in financing, bringing the total IMF financial support disbursed under the arrangement to about 1.72 billion dollars, the IMF said.

Sri Lanka's ambitious reform agenda continues to deliver commendable outcomes, and the 5-percent economic growth in 2024 is remarkable, the IMF said. Revenue mobilization reforms had improved the revenue-to-GDP ratio to 13.5 percent in 2024, from 8.2 percent in 2022.

The IMF added that the country's gross official reserves reached 6.5 billion dollars at end-March 2025, given sizable foreign exchange purchases by the central bank. While substantial fiscal reforms have strengthened public finances, Sri Lanka's debt restructuring is nearly complete, said the statement.

"The new government's sustained commitment to program objectives has enhanced confidence and ensures policy continuity. Going forward, sustaining reform momentum, including by reducing corruption vulnerabilities, is critical to safeguard the hard-won gains, durably restore macroeconomic and debt sustainability, and unlock robust and inclusive growth," it added.

Sri Lanka entered the IMF's 48-month EFF arrangement in March 2023. The EFF amounts to about 3 billion dollars. Enditem