IMF, Sri Lanka..

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.

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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% 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.