📈 IMF Expresses Confidence in Sri Lanka's Resilience to External Shocks

• Overall Assessment: IMF Mission Chief Evan Papageorgiou stated that Sri Lanka's stronger policy framework, rebuilt reserves, and ongoing reforms place the economy on a firmer footing to absorb economic pressures from the Middle East war compared to the past. • Key Milestones: The IMF Executive Board is scheduled to consider the combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF) next week on May 27, 2026. • Economic Progress: Significant progress has been noted over recent years in restoring macroeconomic stability, rebuilding reserves, and strengthening investor and stakeholder confidence. • Future Outlook: While navigating global shocks remains challenging, the IMF emphasized that maintaining a consistent policy course and allowing the economy to adjust to evolving conditions will be key to sustaining recent gains.