The International Monetary Fund’s (IMF) Senior Mission Chief for Sri Lanka, Peter Breuer, has praised the country’s economic recovery in recent years, stating that as economic opportunities improve, income levels will rise, poverty will decline, and Sri Lanka will become a more attractive place to stay rather than emigrate.
Speaking at a press conference following the IMF Executive Board’s completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) program, Breuer highlighted the significant progress made under the initiative.
“Sri Lanka’s reserves have increased significantly under the EFF program. They have already reached about half of the program’s objectives, which is very impressive,” he noted.
Reflecting on the country’s turnaround, Breuer recalled the dire situation in June 2022 when fuel, cooking gas, food, and medicine shortages were widespread. “Economic activity was severely impacted, with Sri Lanka losing around 10% of its economic output due to the crisis,” he said.
However, he emphasized the rapid recovery since the implementation of the IMF-backed program in 2023. “Sri Lanka has already regained 40% of the income it lost over the past five years. The most recent growth figure of 5.5% demonstrates a significant turnaround, which will positively impact key indicators like poverty reduction.”
Breuer expressed optimism that the improving economic landscape would encourage people to stay in Sri Lanka rather than seek opportunities abroad. “As economic opportunities return, those who emigrated will also find prospects back home,” he concluded.
