The International Monetary Fund (IMF) has praised Sri Lanka’s ambitious reform agenda, citing its positive impact on the country’s economic recovery.
“Sri Lanka’s economy expanded by 5.5% in the third quarter of 2024, while average headline and core inflation remained well below target in the fourth quarter. Additionally, international reserves increased to $6.1 billion by year-end,” said Julie Kozack, Director of the IMF’s Communications Department, during a media briefing in Washington, DC.
Kozack stressed the importance of Sri Lanka’s commitment to prior actions, including the submission of the 2025 budget aligned with the IMF program’s parameters. The staff-level agreement reached in November 2024 remains contingent on these actions and awaits Executive Board approval.
The IMF and Sri Lankan authorities reached a staff-level agreement on November 23, 2024, as part of the Third Review of Sri Lanka’s Extended Fund Facility (EFF) program. Upon approval by the IMF’s Executive Board, Sri Lanka will gain access to approximately $333 million in financing, with a final decision expected in the coming weeks.
