IMF Urges Targeted & Temporary Subsidy Measures 📈

• Fiscal Guidelines: IMF Mission Chief Evan Papageorgiou stressed that any fiscal support given amid high global commodity and fuel prices must be time-bound, carefully costed, and targeted toward vulnerable groups while safeguarding fiscal buffers. • Relief Context: Following the Middle East shock in March–April, Sri Lanka implemented a temporary ~Rs. 100 Bn relief package (cash transfers, fertilizer, and electricity pricing support) under the IMF programme, serving as a model for current discussions. • External Buffers: Reserves continued to build through July and August. Central Bank remains committed to reserve targets, with IMF expressing satisfaction over the progress ("direction of travel").