IMF to Sri Lanka: 2026 Budget must align with programme parameters

The International Monetary Fund (IMF) announced yesterday, that its staff have reached a staff-level agreement with Sri Lankan authorities on the fifth review of the country's Extended Fund Facility (EFF) arrangement.

- By SANATH NANAYAKKARE

Once the review is approved by the IMF Executive Board, Sri Lanka will have access to another tranche of about US$347 million in financing (approximately US 2 billion up to now).

However, the IMF issued a strong message, emphasising that the upcoming 2026 Budget must be in line with the programme's parameters to ensure continued fiscal stability.

"The economic reforms implemented by the Sri Lankan authorities have continued to support the recovery, with inflation progressing to target, reserves accumulating, and real GDP growth and revenue mobilisation outperforming expectations,” IMF mission team head Evan Papageorgiou said.