The agreement follows a mission led by IMF’s Evan Papageorgiou, who visited Sri Lanka from 24 September to 9 October to review macroeconomic developments and the implementation of key reforms. The IMF noted that the economy is performing well, with inflation stabilizing, real GDP growth at 4.8% in the first half of 2025, and gross reserves reaching US$6.1 billion by September.
Authorities are expected to maintain reform momentum to safeguard macroeconomic stability, strengthen public financial management, advance debt restructuring, and enhance resilience against external shocks. Social protection, governance reforms, and monetary policy discipline are also emphasized to ensure inclusive and sustainable growth.
Upon completion of the Executive Board review, Sri Lanka will have received a total of US$2.04 billion under the EFF arrangement, supporting fiscal consolidation, reserve accumulation, and structural reforms aimed at restoring investor confidence and promoting long-term economic stability.
