The IMF Executive Board completed the Fourth Review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with immediate access to SDR 254 million (about US$350 million) to support Sri Lanka’s economic policies and reforms.
This is the fifth tranche Sri Lanka receives under the IMF-EFF and the total IMF financial support disbursed so far, accordingly, increases to SDR 1.27 billion (about US$1.74 billion).
In a media release, the IMF noted performance under the program has been generally strong with some implementation risks being addressed. Prior actions on restoring cost-recovery electricity pricing for the rest of 2025 and operationalizing automatic electricity tariff adjustment were met.
All quantitative targets for end-March 2025, except the stock of expenditure arrears, were met. All structural benchmarks due by end-May 2025 were either met or implemented with delay. 2025Q2 inflation fell below the lower outer band of the Monetary Policy Consultation Clause largely due to energy prices. Debt restructuring is nearly complete.
The economic outlook remains positive.
However, the global lender said that global trade policy uncertainties pose significant risks to Sri Lanka’s macroeconomic and social stability. If these shocks materialise, the authorities will work closely with staff to assess the impact and formulate policy responses within the contours of the program.
