Second visit by IMF team due in coming weeks

The International Monetary Fund (IMF) plans to send another mission in coming weeks to Sri Lanka to resume discussions on economic policies for the next review under the Extended Fund Facility (EFF).

The next review of the EFF was delayed as the government sought emergency funding from the fund to deal with new costs incurred owing to the destructive Cyclone Ditwah.

“We reaffirm our solidarity with Sri Lanka and readiness to support the country in its efforts to safeguard macroeconomic stability and promote resilience and sustainable growth,” IMF said in a statement issued on Wednesday at the end of the mission visit.

The team led by Evan Papageorgiou, had meetings with President Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, Labour Minister and Deputy Minister of Finance and Planning Prof. Anil Jayantha Fernando, Central Bank (CB) Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Dr. Harshana Suriyapperuma, Senior Economic Advisor to the President Duminda Hulangamuwa and other senior government and CB officials. The mission also met with representatives from the private sector, civil society organizations, and development partners.

During the mission, the team engaged with authorities and relevant stakeholders to understand the economic and social impact of the cyclone, including the damage to infrastructure and loss of livelihoods. Discussions focused on the fiscal response to the natural disaster, as well as on the implications for monetary policy and financial sector stability. The meetings included in-depth exchanges on the authorities’ policy intentions going forward, their financing needs, and how the IMF can best support Sri Lanka’s recovery and reconstruction efforts under the EFF arrangement.

“As Sri Lanka starts rebuilding, the authorities are committed to safeguard the gains that were achieved on fiscal and debt sustainability, strengthen public investment management including project reprioritisation and implementation, and ensure spending is executed transparently and in compliance with the Public Financial Management Act. They are determined to continue strengthening social safety nets to protect the poor and vulnerable, who are disproportionately affected by the cyclone,” the statement said.