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IMF flags Middle East risks; to assess impact, support for Sri Lanka

Daily FT

March 21, 2026

Combined fifth and sixth reviews could unlock around $ 650-700 m under $ 2.9 b program Mideast conflict seen as key risk via remittances, trade and tourism channels Fund to update outlook and calibrate support based on impact assessment as it weighs combined reviews

THE International Monetary Fund (IMF) has flagged Sri Lanka’s significant exposure to the Middle East conflict and said it will assess the potential economic impact and how best to support the country during its upcoming mission, as authorities seek to complete a combined Fifth and Sixth Review under the Extended Fund Facility program.

An IMF staff team is scheduled to visit Sri Lanka from 26 March to 9 April to hold discussions with authorities on economic policies, with the external shock from the Middle East crisis expected to weigh on the country's nearterm outlook.

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