IMF: Trump Tariffs Create Uncertainty for Sri Lanka's Recovery

Colombo, Apr 11 (PTI) The external shock in the form of tariffs imposed on a range of countries by the Trump administration has created uncertainity for Sri Lanka in its path to recovery from economic crisis, the IMF said here on Friday.

“The recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from crisis," the International Monetary Fund (IMF) said at the end of a staff visit.

The IMF team was here from April 3 until Friday to discuss Sri Lanka's performance and policies for the four-year USD 2.9 billion facility extended in 2023.

“The post crisis growth rebound of 5 per cent in 2024 is impressive, inflation declined considerably in recent quarters and has fallen to -2.6 per cent at end of March 2025," the global lender said, adding that substantial fiscal reforms strengthened public finances.

On Trump tariff, the IMF said more time was needed to assess the impact of the global shock and how its implications could be addressed “within the contours of its IMF supported programme”.

Sri Lanka has been hit by a 44 per cent tariff by the Trump administration to overcome the trade imbalance.

Sri Lanka last year exported about USD 3 billion worth apparel to the US while importing USD 300 million US products.

President Anura Kumara Dissanayake told an all party meeting on Thursday that he had written to President Donald Trump on Sri Lanka's plight with increased US tariffs.