President Anura Kumara Dissanayake has said the Government is considering the possibility of entering into a new programme with the International Monetary Fund (IMF) after the current four-year arrangement concludes, with a final decision expected within the next six months.
Speaking during a discussion organised by the Ceylon Chamber of Commerce, the President said the Government's priority was to maintain the economic stability achieved under the existing IMF-supported programme while creating conditions for economic growth.
He noted that Sri Lanka had made progress in improving its credit ratings following debt restructuring, but foreign reserves still needed to reach the expected level before the country could move forward with its economic plans.
The President also highlighted the rising cost of fuel imports as a major challenge amid global economic uncertainty. Sri Lanka spent US$4.042 billion on fuel imports last year, while expenditure during the first eight months of this year alone reached US$4.082 billion.
Based on the current trend, fuel import costs could reach approximately US$6 billion by the end of the year, placing additional pressure on the country's economy.
President Dissanayake said the primary objective of the first four-year Extended Fund Facility (EFF) programme with the IMF had been to achieve economic stability, and that this objective had been successfully accomplished.
He stressed that the next phase should focus on preserving that stability while promoting economic growth. The Government would be prepared to proceed with a new IMF agreement if it supported this objective.
The President further said there had been no major contradictions between the Government's economic vision and the conditions agreed upon with the IMF, enabling the country to complete the existing four-year programme without significant conflict.
Meanwhile, a team of economic experts, including officials from the Ministry of Finance and the Governor of the Central Bank, is discussing the possible structure of a future programme.
The President said the Government expects to reach an appropriate decision within the remaining six months, taking into consideration external economic shocks and the country's economic requirements.
