### IMF Chief Declares Sri Lanka’s Recovery a “Success Story” 📈

IMF Managing Director Kristalina Georgieva visited the Central Bank of Sri Lanka (CBSL) on 17 February 2026, marking the 75th anniversary of both institutions. The visit highlighted Sri Lanka's transition from an unprecedented economic crisis to a stabilized economy. • Overall Performance: The IMF MD officially recognized Sri Lanka’s execution of the current Extended Fund Facility (EFF) as a global success story, praising the CBSL for restoring macroeconomic stability. • Key Economic Outlook: • Growth Projection: While the IMF projects a 2026 trend growth of 3.1%, the CBSL Governor estimated a more optimistic 4%–5% growth rate for the year. • Inflation: Headline inflation (Y-o-Y) was recorded at 2.3% in January 2026, up slightly from 2.1% in December 2025. • Fiscal Stability: The country has successfully facilitated the debt restructuring process and maintained foreign exchange reserve growth. • Sectoral focus & Reforms: • Structural Reforms: Continued growth is contingent on sustaining reforms in the energy sector (cost recovery) and financial sector policies. • Disaster Response: Discussions integrated recovery efforts for the agriculture and infrastructure sectors following Cyclone Ditwah, supported by a US$ 206 Mn Rapid Financing Instrument. • Strategic Support: The CBSL acknowledged critical IMF technical assistance in monetary policy modeling and macroprudential analysis to safeguard the financial system.