IMF backs revenue gains, keeps focus on cost-recovery pricing

Wednesday, 1 July 2026 00:27 - - {{hitsCtrl.values.hits}}

The International Monetary Fund (IMF) yesterday welcomed Sri Lanka’s fiscal performance so far this year, saying revenue collection had remained broad-based despite external shocks, while reiterating that reforms to energy pricing and public finance remain central to the country’s economic program.

IMF Mission Chief Evan Papageorgiou said the Fund had observed robust revenue performance despite the disruption caused by last year’s cyclone and subsequent economic pressures, describing the outcome as a welcome development that had helped strengthen fiscal space.

He said the Government’s temporary relief package announced earlier this year had been designed as a time-bound response to rising prices and targeted support for vulnerable groups, adding that the IMF had not discussed any need for further assistance beyond the existing measures.

On energy pricing, Papageorgiou said the IMF’s assessment of cost recovery takes account of temporary on-budget fiscal transfers provided to cushion consumers from higher fuel and electricity costs. He said these transfers form part of the calculation when assessing whether pricing remains consistent with program commitments.

He also pointed to ongoing work on the electricity tariff methodology, public financial management regulations, tax registry reforms and other fiscal measures identified under the EFF program.