Sri Lanka’s economic performance has improved – IMF
October 16, 2025 01:23 pm
Sri Lanka’s economic performance has improved following the debt restructuring process, the International Monetary Fund (IMF) has stated.
Jason Wu, the Assistant Director of the Monetary and Capital Markets Department at the IMF said they are pleased with the performance of Sri Lanka but stressed that the more favorable environment should not lead to complacency.
He said on frontier markets such as Sri Lanka, the softer dollar has lessened external pressure. Therefore, he stated that frontier economies need to continue improving fundamentals—both on the current account and fiscal buffers—as highlighted in the World Economic Outlook (WEO).
Meanwhile, the IMF also commended the progress made by Sri Lanka following the debt restructuring, noting that the country is on a path toward growth and restoring investor confidence.
Presenting the latest Global Financial Stability Report (GFSR) in Washington D.C., Tobias Adrian, the Director of the IMF’s Monetary and Capital Markets Department highlighted improving market conditions for frontier economies.
Director Adrian stated that Sri Lanka has been emerging from a debt restructuring and is on the path to growth and to restoring confidence.
He stated “When we look at global markets relative to frontier economies—low-income countries with market access—we do see that financial conditions are fairly easy, so there is liquidity. Countries can access markets. Indeed, we have seen quite a bit of issuance this year, in line with historical standards.”
The IMF also warned that apparent calm in global financial markets may mask significant vulnerabilities.
