IMF reviews Sri Lanka Budget 2026 to check alignment with program parameters

The International Monetary Fund says its Executive Board is expected to meet in the coming weeks to consider the next tranche of funding for Sri Lanka under the Extended Fund Facility.

Speaking at a press briefing on November 13, 2025, IMF Communications Director Julie Kozack said the Fund had reached a Staff Level Agreement with the Sri Lankan authorities on October 9, 2025, for the Fifth Review of the program. Once approved by the Executive Board, Sri Lanka will receive about 347 million United States dollars.

Commenting on Sri Lanka’s newly presented budget and its ambitious target of seven percent economic growth in 2026, Kozack said IMF staff are currently reviewing the published budget documents to determine whether the 2026 projections align with the program’s parameters. She added that this assessment will form a key part of the upcoming Board discussions.

Kozack also stressed that structural reforms remain essential for raising Sri Lanka’s long term growth potential. She highlighted several priority areas, including ongoing efforts to liberalize trade and ease regulations related to foreign direct investment.

She further noted the importance of speeding up the governance reforms listed in the government’s action plan. This includes improvements in public procurement and strengthening the framework on anti money laundering and countering the financing of terrorism.

Kozack added that protecting vulnerable groups must remain a priority, with room to further enhance the Welfare Benefit Payments scheme.

She said these reforms will be closely monitored as part of the review process, as they are vital for boosting Sri Lanka’s economic recovery.