An International Monetary Fund (IMF) delegation, led by Evan Papageorgiou, wrapped up a visit to Colombo on April 11, 2025, following discussions about Sri Lanka's ongoing recovery and reform efforts. The IMF team highlighted the country’s impressive 5% growth rebound in 2024, alongside significant progress in inflation control, which dropped to -2.6% by March 2025. Gross official reserves had also risen to $6.5 billion by the same date, bolstered by strong foreign exchange purchases by the central bank.
Despite these positive developments, Papageorgiou cautioned that external global shocks were adding uncertainty to Sri Lanka’s recovery, which is still in the wake of its own economic crisis. He emphasized the need for continued commitment to IMF-backed reforms, stressing that fiscal discipline and enhanced revenue mobilization would be key to maintaining the momentum.
The IMF underscored the importance of strengthening public finances through better tax compliance, reducing tax exemptions, and tackling fiscal risks, particularly within the state-run electricity sector. Protecting the most vulnerable members of society amid ongoing challenges was also highlighted, with calls for more targeted and efficient social safety nets.
Papageorgiou acknowledged the Sri Lankan government’s ongoing efforts in reform, including discussions on electricity pricing and structural changes in the tax system. He reaffirmed the IMF’s commitment to support Sri Lanka’s recovery, with the goal of reaching a staff-level agreement soon to complete the fourth review of the country’s IMF-supported program.
The IMF delegation met with top officials, including President Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, and Central Bank Governor Dr. P. Nandalal Weerasinghe, as well as representatives from the private sector and civil society
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