Friday Oct 23, 2026
Friday Oct 23, 2026
Friday, 23 October 2026 05:06 - - {{hitsCtrl.values.hits}}
New Democratic Front MP Ravi Karunanayake yesterday urged the Government to secure a successor to Sri Lanka’s International Monetary Fund (IMF) program, arguing that IMF backing remains crucial despite being unpalatable, as the current arrangement nears its end in March 2027.
Raising questions in Parliament, Karunanayake asked whether, beyond completing the existing IMF program, a successor arrangement had been requested or discussed, and what financing, conditionalities, social protection and debt sustainability steps were being considered.
“We have been saying that going to the IMF is unpalatable, but once you have declared yourself bankrupt, as happened on 12 April 2022, you need to hold hands with the IMF to come out of it,” he said.
“The four-year program is coming to an end in March 2027, so there must be a successor program, and we want to see what it is,” Karunanayake added, describing such a program as necessary to take the country to “a stable tomorrow”.
He questioned whether securing a successor IMF program would better insure Sri Lanka against prolonged external shocks and, if not, what demonstrably more beneficial alternatives could provide comparable financing, credibility and protection. He called on the Government to table its comparative assessment, identify its preferred option and implementation timetable, and report quarterly to Parliament on financing, delivery, outcomes and risks.
Karunanayake framed his call against the conflict involving the United States, Israel and Iran, which he said began on 20 February, 2026, and threatens Sri Lanka’s recovery through energy, trade and financing shocks.
He sought a quantified Government response on the monthly cumulative additional costs of petroleum, gas, coal, fertiliser, freight and aviation against the pre-war baseline, as well as losses in tourism, exports, overseas employment and investment. He also asked for the effects on growth, inflation, household income, poverty and Government revenue, how these costs were being financed, and who ultimately pays.
On reserves, he asked the Government to disclose usable reserves, restricted reserves, IMF liabilities, import cover and external payments due within 12 months. He further called for three-, six- and 12-month scenarios on the conflict’s duration covering oil prices, financing gaps, reserves and debt service.
Karunanayake also urged that any fuel subsidy be given to the Ceylon Petroleum Corporation (CPC) rather than foreign companies, and asked what strategy, with responsible agencies and deadlines, would diversify energy supply, accelerate renewables, protect migrant workers, secure import markets, attract displaced businesses and preserve balanced diplomatic relations.
