📈 Sri Lanka Open to New IMF Deal as Fuel Import Bill Rises

Speaking at the Sri Lanka Economic and Investment Summit 2026, President Anura Kumara Dissanayake stated the government is open to a new International Monetary Fund (IMF) program after the current arrangement ends in March 2027, though no final decision has been made. • IMF Engagement & Stability: • Sri Lanka will use the remaining 6 months of its current 48-month, US$ 3 Bn Extended Fund Facility (EFF) to evaluate options. • Future agreements will shift focus from crisis recovery to sustainable economic growth, supported by the Ministry of Finance and Central Bank. • Priority remains on building foreign exchange reserves, boosting credit ratings, and buffering against global uncertainty. • Macroeconomic Pressures & Energy: • Fuel import expenditure is projected to reach ~US$ 6 Bn in 2026 due to Middle East conflicts. • Comparative import figures: US$ 4.04 Bn total in 2025 vs. US$ 4.08 Bn already spent in the first 8 months of 2026. • Higher fuel costs pose significant pressure on the country's external reserves and trade balance.