IMF mission conducting fifth review of Sri Lanka program

An International Monetary Fund mission is in Sri Lanka conducting a fifth review of its Extended Fund Facility (EFF) program, and the economy is recovering and taxes are improving, an official said.

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" ... [W]hat I can say with respect to the timing of the next review is that we do have a mission on the ground now in Sri Lanka to conduct the Fifth Review of the EFF," Julie Kozack, Director, Communications Department told reporters in Washington.

"Given that the team is now currently in discussions with the authorities, I won't say more other than to say that, of course, the team will communicate at the end of the mission."

Sri Lanka's program is achieving "impressive progress", she said, with revenue collections up and inflation low.

"There has been a post-crisis rebound in growth to 5 percent in 2024, which is a remarkable achievement," she said.

"The revenue-to-GDP ratio in the budget improved to 13.5 percent of GDP from 8.2 percent in 2022, which is also a significant increase, although still work to be done.

"The debt restructuring process is nearly complete. Program performance overall is generally very strong, and the government remains committed to the program's objectives."