IMF to assess impact of external risks on Sri Lanka’s economy during fifth review
July 25, 2025 09:06 am
The International Monetary Fund (IMF) has acknowledged Sri Lanka’s continued economic progress as the country prepares for its fifth review under the IMF-supported Extended Fund Facility (EFF) arrangement.
Speaking at a press briefing held yesterday (24), IMF Communications Director Julie Kozack provided an update on the status of Sri Lanka’s economic program and upcoming evaluations.
On July 1st, the IMF Executive Board completed the fourth review of Sri Lanka’s program, releasing a tranche of $350 million and bringing the total financial assistance to $1.74 billion.
Kozack highlighted that Sri Lanka’s “ambitious reform agenda continues to deliver commendable outcomes,” noting significant improvements across key economic indicators.
According to Kozack, inflation remains low, revenue collection is on an upward trend, and international reserves continue to grow.
“The post-crisis growth rebound to 5 percent in 2024 is quite remarkable. The revenue-to-GDP ratio improved from 8.2 percent in 2022 to 13.5 percent in 2024,” she noted.
Sri Lanka’s debt restructuring process is nearly complete, and the country’s overall program performance has been described as “generally strong.” Kozack affirmed the government’s commitment to achieving the program’s objectives.
Looking ahead, the IMF’s fifth review is expected to take place in the fall of 2025, she said.
While the macroeconomic outlook remains positive, Kozack acknowledged that risks persist, particularly from global trade tensions and policy uncertainties.
She emphasized that the IMF team will assess these external risks and their implications during the upcoming review in close consultation with Sri Lankan authorities.
“They will take that into account in discussions with the authorities on policies, and all of the program matters as part of the Fifth Review,” she added.
