IMF Stresses Sri Lanka's Reform Agenda - PTI

Colombo, Mar 8 (PTI) The International Monetary Fund has emphasised the need for Sri Lanka to sustain its reform agenda linked to the global lender's bailout programme, the President's Office said on Saturday.

During a recent virtual discussion with President Anura Kumara Dissanayake, IMF Managing Director Kristalina Georgieva emphasised the importance of continuing with the reforms to ensure Sri Lanka's path toward sustainable and equitable growth, it said.

"Ms Georgieva emphasised the need to persevere with the reform agenda under the programme to decisively put Sri Lanka on the path to sustainable and equitable growth. She acknowledged that the journey to sustained recovery remains challenging, particularly given rapid global developments in technology and geopolitics,” the President's Office said in a statement.

Sri Lanka is now halfway through its four-year, USD 2.9 billion IMF programme, which began in 2023. Following three successful reviews, the country has so far received four tranches of USD 340 million each.

President Dissanayake reaffirmed his government's commitment to completing the remaining reviews. Georgieva congratulated Sri Lanka on maintaining macroeconomic stability, completing the third review, and achieving progress in bond exchange and debt restructuring.

“The Managing Director commended Sri Lanka's efforts in pursuing key reforms and reaffirmed the IMF's commitment to supporting Sri Lanka's economic agenda," the statement said.

Dissanayake assured the IMF that the government remains dedicated to implementing the necessary mechanisms to uplift the underprivileged while prioritising increased social welfare expenditures as a key policy measure.

“The President highlighted the government's dedication to enhancing state-owned enterprises through improved governance and cost-recovery pricing, including for electricity. He also stressed the importance of securing foreign direct investment and support from multilateral partners to reduce debt vulnerabilities and promote sustainable and inclusive growth,” the statement said.