Sri Lanka Not Out of the Woods Yet, Says IMF in Latest Briefing
Sri Lanka Under IMF Scrutiny
The International Monetary Fund (IMF) has expressed concerns regarding Sri Lanka's economic recovery. While acknowledging the notable improvements made, the IMF stresses that Sri Lanka is not out of the woods yet. Director of the IMF Communications Department, Julie Kozack, emphasized the importance of sustained reforms and vigilance, especially with upcoming presidential elections.
Significant Milestones Achieved
Kozack noted that significant milestones have been achieved under the IMF's Extended Fund Facility (EFF) program, including a recent unlocking of USD 336 million in funding. Economic growth is beginning to recover, but challenges remain.
Economic Risks Remain
Despite improvements, Kozack cautioned that Sri Lanka's economy faces substantial risks, urging the need for continued momentum in reforms. She responded to inquiries regarding the domestic debt restructuring, indicating that crucial steps have been made but underscored the IMF's role as a supporter of reform rather than a mediator in creditor negotiations.
Looking Forward Post-Elections
The timing of the Third Review of the program will hinge on the results of the forthcoming elections. Kozack stated, “Program discussions will resume after the elections, once a new government is in place.”
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.