IMF Evaluates Sri Lanka’s Economic Recovery and Reform Progress

Filmogaz.com reports that Sri Lanka has reached an agreement with the International Monetary Fund. The deal completes the combined fifth and sixth reviews of the country’s reform program.

Review timeline and announcement

The IMF carried out the reviews from March 26 until April 9. The fund announced the outcome on Thursday.

Funding unlocked

The agreement clears the way for a $700 million disbursement. This sum is part of a $2.9 billion bailout package originally earmarked for 2023.

Key economic indicators

Sri Lanka recorded real GDP growth of 5% year-on-year in 2025. Inflation fell back to 2.2% in March, supporting signs of stabilization.

External buffers also improved. Foreign reserves rose to $7 billion by the end of March 2026.

IMF guidance and risks

The IMF urged continued acceleration of reform momentum. It flagged risks from regional conflicts and natural disasters.

The fund called for stronger tax measures and prudent fiscal policy. These steps aim to secure macroeconomic stability and boost socio-economic resilience.

Outlook

Authorities will now work to implement agreed measures and receive the agreed funds. The IMF will continue to monitor Sri Lanka’s economic recovery and reform progress closely.