IMF chief said strong governance and anti-corruption reforms present Sri Lanka a unique opportunity to accelerate development and sustain economic growth
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, met President Anura Kumara Dissanayake this morning (17) at the Presidential Secretariat to discuss Sri Lanka’s economic recovery, post-disaster assistance and the next phase of the IMF-supported reform programme.
The IMF Managing Director expressed solidarity with Sri Lanka following recent natural disasters, noting that just as the economy was recovering, a devastating cyclone had affected several regions. She observed that affected rural communities require renewed economic dynamism and emphasised the importance of timely assistance for housing, land rehabilitation and improved livelihood opportunities. She acknowledged the swift response of the Government in extending support to affected communities and noted that the IMF had also provided over US$200 million in emergency financing to assist recovery efforts.
Discussions focused on how the IMF could continue to provide the most effective support to Sri Lanka under the ongoing programme, which has contributed to restoring macroeconomic and financial stability. The Managing Director noted that the partnership between Sri Lanka and the IMF is delivering tangible benefits for both the economy and the public and that the intention is to continue along this path while pursuing higher ambitions for growth and productivity.
Ms Georgieva observed that Sri Lanka has faced multiple shocks, including the civil conflict, the tsunami, terror attacks, the pandemic and governance challenges, which had constrained long-term growth. With the current government committed to good governance and anti-corruption reforms, she noted that Sri Lanka now has a unique opportunity to accelerate development and achieve sustained economic progress.
The IMF - MD highlighted the importance of achieving higher growth rates of around 7–8 per cent to meet the aspirations of the public, alongside strengthening disaster preparedness through improved early warning systems. Emphasis was also placed on enhancing governance and institutional performance, including the implementation of the Governance Diagnostic Assessment, in which Sri Lanka is the first country in Asia to participate. Strengthening public investment management and addressing strengthening and promoting opportunities to private sector investment were also identified as key priorities for supporting long-term growth.
Agricultural productivity and rural economic transformation were key areas of focus. It was noted that a significant share of the population is engaged in agriculture while contributing a relatively smaller portion to GDP, underscoring the need for a medium-term strategy to enhance productivity and diversify employment opportunities in rural areas while preserving land ownership and cultural traditions.
Collaboration with development partners, including the World Bank and the Asian Development Bank, was also discussed in relation to sectoral development and investment promotion.
President Anura Kumara Dissanayake welcomed the IMF Managing Director and appreciated the continued support extended to Sri Lanka during a period of severe economic hardship. He noted that international cooperation had been instrumental in stabilising the economy and improving the living conditions of the public, particularly vulnerable groups affected by recent crises. He reaffirmed that extending the benefits of economic recovery to every citizen, stands as a paramount priority of the Government.
The President highlighted the Government’s ongoing efforts to rebuild the economy while addressing the immediate needs of the people, including resettlement and housing for families displaced by disasters and landslides, as well as ensuring access to basic services such as water, electricity and other essential infrastructure in rural areas. He emphasised that improving rural livelihoods, particularly through new economic opportunities beyond traditional agriculture, remains a key priority of the Government’s development agenda.
The meeting reaffirmed the commitment of both Sri Lanka and the IMF to continue close cooperation aimed at sustaining macroeconomic stability, strengthening governance, promoting inclusive growth and enhancing resilience against future shocks.
Minister of Labour and Deputy Minister of Finance and Planning, Prof. Anil Jayantha Fernando; Governor of the Central Bank, Dr. P. Nandalal Weerasinghe; Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake; Senior Economic Adviser to the President, Duminda Hulangamuwa; Secretary to the Treasury, Dr. Harshana Suriyapperuma; Secretary to the Ministry of Trade, Commerce, Food Security and Co-operative Development, K.A. Vimalenthirarajah; and Senior Additional Secretary to the President, Russell Aponso also participated. PMD
