IMF says Sri Lanka making “impressive progress” as Fifth Review begins

The International Monetary Fund (IMF) has praised Sri Lanka’s economic progress as discussions are underway in Colombo for the Fifth Review of the Extended Fund Facility (EFF) program.

Speaking at a press briefing on October 2, 2025 IMF Communications Director Julie Kozack said Sri Lanka’s comprehensive reform program has continued to deliver strong results. She highlighted that inflation remains low, government revenue collection has improved, international reserves are being built up, and economic growth rebounded to 5 percent in 2024 following the crisis.

“The revenue-to-GDP ratio improved to 13.5 percent in 2023, compared with 8.2 percent in 2022. This is a significant increase, although more work remains to be done,” Kozack said. She also confirmed that the debt restructuring process is nearly complete and that program performance is “generally very strong.”

Kozack reminded that the IMF Executive Board completed the Fourth Review on July 1, which enabled the disbursement of US$350 million, bringing total IMF support for Sri Lanka to US$1.74 billion.

On the Fifth Review, she said an IMF mission is already in Sri Lanka holding discussions with the authorities. “Given that the team is currently in discussions, I won’t say more at this stage, but the team will communicate at the end of the mission,” she noted.

The IMF said the EFF program aims to restore macroeconomic stability, ensure debt sustainability, strengthen the financial sector, and promote structural reforms to support growth.