📈 IMF Urges Sri Lanka to Stay Focused on EFF Program Completion

The International Monetary Fund (IMF) has called on Sri Lanka to prioritize completing its ongoing Extended Fund Facility (EFF) program, which has two remaining reviews before expiring in March 2027. • Macroeconomic & Fiscal Progress Government revenue ratio doubled during the reform period. Sri Lanka's fiscal performance remains notably strong compared to regional peers. Economic growth turned positive for 11 consecutive quarters following the crisis-era contraction. External debt restructuring is now largely complete. • Program Timeline & Remaining Steps Staff-level agreement reached on the 7th Review in early October, heading to the Executive Board for final approval in coming weeks. Final review mission scheduled before the program concludes in March 2027. IMF emphasized consolidating structural gains, particularly in national governance reforms. • Post-2027 Outlook Future engagement decisions—such as a new financing arrangement, surveillance policy advice, or capacity development—remain entirely with Sri Lankan authorities. IMF reaffirmed its commitment as a long-term economic partner. • Regional Context (Asia-Pacific) Regional growth projected to slow to 4.8% in 2026 and 4.4% in 2027. India's growth forecast raised to 7.0%, while Bangladesh faces high inflation (9%+) and low revenue-to-GDP (7%).