Posted by Editor on March 20, 2026 – 12:46 pm
IMF Communications Director Julie Kozack stated Sri Lanka’s economic system is exhibiting stable restoration, however rising world dangers, particularly from the Center East, might affect its future efficiency.
Responding to questions from journalists at a press briefing on March 19, 2026, Kozack stated Sri Lanka’s reform program has made “very vital progress,” even after the affect of Cyclone Ditwah.
She famous that IMF Managing Director Kristalina Georgieva, who lately visited the nation, praised each the reform efforts and the resilience of the Sri Lankan individuals in overcoming main challenges.
On financial efficiency, Kozack pointed to a number of constructive indicators. Sri Lanka’s economic system grew by 5 p.c in 2025, whereas inflation remained low at round 1.6 p.c in February 2026.
She additionally stated debt restructuring is almost full and that gross worldwide reserves have been rising considerably, indicators of enhancing financial stability.
Nevertheless, she cautioned that Sri Lanka stays extremely uncovered to exterior dangers, notably the continued battle within the Center East.
These dangers, she stated, might have an effect on the nation by way of commerce, remittances, and tourism, probably weighing on the financial outlook.
Addressing questions on doable modifications to the IMF-supported program, Kozack didn’t verify any fast recalibration of targets underneath the Prolonged Fund Facility.
As a substitute, she stated additional evaluation would happen throughout upcoming discussions with Sri Lankan authorities.
An IMF crew is scheduled to go to Sri Lanka from March 26 to April 9, 2026, to carry discussions on financial insurance policies and full a mixed Fifth and Sixth Evaluation of this system.
The crew will even assess how world developments, particularly the state of affairs within the Center East, might have an effect on Sri Lanka’s economic system.
Kozack added that the findings from this mission will assist the IMF replace its evaluation and decide how finest to proceed supporting Sri Lanka.
On associated issues, together with electrical energy tariff will increase and coverage changes, Kozack didn’t present particular solutions, indicating that such points would possible be addressed in the course of the upcoming assessment discussions.
The IMF’s engagement within the coming weeks is predicted to play a key position in shaping the subsequent part of Sri Lanka’s financial restoration amid an unsure world atmosphere.
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