The International Monetary Fund (IMF) is assessing whether Sri Lanka’s 2026 budget proposals meet the financial parameters required to support the government’s 7% economic growth target, IMF Communications Director Julie Kozack said during a press briefing.
Kozack said that the IMF is currently reviewing the budget’s consistency with the macroeconomic framework set under Sri Lanka’s Extended Fund Facility (EFF).
She noted that the assessment will form a key part of the IMF Executive Board’s upcoming discussions.
On October 9, IMF staff and Sri Lankan authorities reached a staff-level agreement on the Fifth Review of the EFF.
Once approved by the Executive Board, Sri Lanka is expected to gain access to around USD 347 million in financing.
Kozack also outlined priority structural reforms, highlighting the need to further liberalise trade, streamline foreign direct investment (FDI) regulations, and accelerate the execution of governance reforms outlined in the government’s action plan.
These include improvements in procurement procedures and strengthening frameworks for anti-money laundering and countering the financing of terrorism (AML/CFT).
She stressed that protecting vulnerable communities must remain central to Sri Lanka’s reform agenda, adding that there is room to expand the country’s welfare benefits payment scheme as part of efforts to support long-term, sustainable growth.
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