Key Takeaways
- Sri Lanka’s economic growth averaged 4.3 percent since growth resumed in the third quarter of 2023.
- The IMF’s review found that Sri Lanka’s performance under the program has been strong, with all quantitative targets for end-December 2024 met, except the indicative target on social spending.
- The IMF is providing financial support and policy advice to Sri Lanka to help the country restore and maintain macroeconomic stability, protect the poor and vulnerable, and rebuild external buffers.
Colombo: The International Monetary Fund (IMF) Executive Board completed the third review under the 48-month Extended Fund Facility (EFF) with Sri Lanka, providing the country with immediate access to Special Drawing Right (SDR) 254 million (about 334 million U.S. dollars) to support its economic policies and reforms, the IMF said in a press release on Friday.
Sri Lanka’s performance under the IMF program has been strong, with all quantitative targets for end-December 2024 met, except for the indicative target on social spending. This indicates a positive trend in the country’s economic recovery.
Reform efforts are bearing fruit, and the recovery is gaining momentum. This is a positive sign for Sri Lanka’s economic future. As the economy is still vulnerable, sustaining the reform agenda is critical to put the economy on a path toward lasting recovery and debt sustainability.
The IMF said economic growth averaged 4.3 percent since growth resumed in the third quarter of 2023. By end-2024, Sri Lanka’s real GDP is estimated to have recovered 40 percent of its losses incurred between 2018 and 2023. The recovery is expected to continue in 2025, the IMF said.
The program supports Sri Lanka’s efforts to restore and maintain macroeconomic stability and debt sustainability while protecting the poor and vulnerable, rebuilding external buffers, and enhancing growth-oriented structural reforms, including strengthening governance, the IMF said.
