Friday May 15, 2026
Friday May 15, 2026
Friday, 15 May 2026 06:52 - - {{hitsCtrl.values.hits}}
Communications Department Director Julie Kozack
The International Monetary Fund (IMF) yesterday said it expects its Executive Board to meet within the coming weeks to consider approval of Sri Lanka’s combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF), a move that could unlock approximately $ 700 million in financing for the country.
Speaking at a press briefing yesterday, IMF Communications Department Director Julie Kozack said the IMF team and Sri Lankan authorities had reached a staff-level agreement on 9 April, although completion of the review remains subject to Executive Board approval.
Kozack said several prior actions had to be completed before the program could be presented to the Board, including the restoration of cost-recovery pricing for electricity and fuel while protecting vulnerable groups, as well as the completion of the financing assurances review.
She noted that the move towards cost-reflective pricing involved a “dual approach,” balancing full cost recovery with social protection measures for vulnerable segments.
Once approved, Sri Lanka will gain access to around $ 700 million in financing under the IMF-supported program.
Addressing the broader economic outlook, Kozack said Sri Lanka had recently faced “two very large shocks” that affected economic activity and recovery momentum.
She identified Cyclone Ditwah as a major humanitarian and economic crisis, describing it as “tragic and devastating” for the country. She also pointed to the continuing impact of the war in the Middle East on global and domestic economic conditions.
Despite these developments, Kozack said the Sri Lankan economy and its people had “shown remarkable resilience.”
According to the IMF, reforms implemented under the program over the past several years are beginning to deliver results, with Sri Lanka’s strong economic performance supported by continued policy implementation.
Kozack said fiscal performance in 2025 had been particularly strong, driven largely by revenue improvements, while debt restructuring was nearing completion.
She also noted that Sri Lanka’s economy grew by 5% in 2025 and that inflation, which had previously been in negative territory, had now returned to positive levels.
Kozack further stated that Sri Lanka’s debt-to-GDP ratio is expected to continue declining.
Summing up the outlook, she said the Sri Lankan economy was performing well and that the authorities had demonstrated strong commitment to maintaining reforms.
“The IMF remains very committed to supporting Sri Lanka,” Kozack said, adding that the Fund would “work very closely with the authorities” in determining how best to continue supporting the country’s economic stabilisation and recovery efforts.
