The International Monetary Fund (IMF) and Sri Lankan authorities have reached a staff-level agreement on the economic policies required to conclude the fourth review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility (EFF). 

Once approved by the IMF Executive Board, Sri Lanka will gain access to approximately $344 million in financing.

The IMF has praised the program's overall performance, noting a strong economic recovery, improvements in revenue mobilization, and substantial progress in debt restructuring. However, global trade policy uncertainties present downside risks to Sri Lanka's economy. 

The IMF emphasised that, should these risks materialise, both the authorities and IMF staff will work together to manage the situation within the framework of the IMF-supported program.

Despite some challenges, including the need to restore cost-recovery electricity pricing, the IMF commended Sri Lanka’s recovery, forecasting a 5% growth rebound in 2024. The country's revenue-to-GDP ratio has also improved significantly, and official reserves have reached $6.5 billion as of March 2025.

The IMF further stressed the importance of continuing efforts in revenue mobilization, prudent fiscal management, and rebuilding external buffers to ensure the country's financial stability.