Central Bank Governor Dr. Nandalal Weerasinghe says Sri Lanka has reached a staff-level agreement with the IMF on the completion of the fifth review of the USD 3 billion Extended Fund Facility (EFF), marking an important step in the country’s economic reform program.
Dr. Weerasinghe said the review is “more than halfway completed” and is expected to be submitted to the IMF Board in December 2025, subject to the fulfilment of key benchmarks.
“The important one is to submit the budget and get the budget passed for 2026 in Parliament after the third reading. That’s the first important benchmark,” he said.
Other critical areas include SOE reforms, fiscal repricing, and the introduction of a simplified pricing mechanism to support fiscal recovery and revenue-based consolidation.
Dr. Weerasinghe also noted the inclusion of two new “unconventional” pillars this year, strengthening social safety nets for the most vulnerable and addressing corruption and governance issues.
He stressed that the real value of the IMF program lies not just in financial assistance but in the structural reforms and support from international partners.
Dr. Weerasinghe made these remarks on the sidelines of the 2025 Annual Meetings of the World Bank Group and the International Monetary Fund taking place in Washington D.C.
Looking beyond the program period, he emphasized the need to sustain reforms to boost growth, attract investment, maintain debt sustainability beyond 2028, and achieve growth rates above the baseline to ensure long-term economic stability.
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