🇱🇰 Sri Lanka Exploring Growth-Oriented New IMF Deal

Sri Lanka is exploring a new agreement focused on economic growth following the scheduled completion of its current US$ 3 Bn Extended Fund Facility (EFF) in March 2027, according to President Anura Kumara Dissanayake. • IMF Programme Status & Policy: - The current EFF has delivered economic stability, improved credit ratings, and progress toward foreign reserve targets. - Officials from the Finance Ministry and Central Bank are assessing modalities for a future framework. - No firm commitments have been made; Sri Lanka is open to a new deal but is neither desperate nor compelled. • External Risks & Sector Breakdown: - The economy has built capacity to withstand domestic shocks, but external vulnerabilities remain high due to global geopolitical tensions. - Impacted significantly by rising costs in the energy & petroleum import sector due to Middle East conflicts. - Fuel import bill reached US$ 4.08 Bn in the first 8 months of 2026 (exceeding full-year 2025 imports of US$ 4.04 Bn), with 2026 projections nearing US$ 6 Bn.