Sri Lanka’s economic recovery garners commendation from the International Monetary Fund chief by Dr. Harold Gunatillake
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Kristalina Georgieva warmly praises Sri Lanka’s impressive progress as the country continues its journey of economic recovery.
Overvie “The IMF continues to dedicate itself to assisting Sri Lanka through the provision of technical support and regular assessments, offering guidance as the nation endeavours to bolster its economic infrastructure”.
Sri Lanka’s recent advances in economic recovery have garnered international recognition, with Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), commending the nation’s progress. During a recent event, Georgieva emphasised the resilience and perseverance of the Sri Lankan government and its citizens as they navigated a period of considerable financial difficulty.
In her remarks, Georgieva acknowledged the “impressive commitment” demonstrated by authorities in executing essential reforms. These reforms, designed to stabilise the economy, encompassed restructuring public debt, establishing fiscal discipline, and emphasising transparency in governance. The IMF chief observed that such measures were crucial in restoring confidence among investors and the international community, thereby facilitating renewed economic growth.
Sri Lanka’s economic crisis, which culminated in 2022, was characterised by soaring inflation, shortages of essential goods, and widespread protests. The government’s engagement with the International Monetary Fund (IMF) led to a multibillion-dollar bailout program contingent on the implementation of stringent structural reforms and fiscal policies. According to Kristalina Georgieva, the Managing Director of the IMF, Sri Lanka’s resolve to make difficult decisions and sustain reform efforts has been crucial to achieving tangible improvements, including currency stabilisation, inflation reduction, and foreign reserve replenishment.
“Sri Lanka’s progress exemplifies the potential achievable through decisive leadership and a well-defined reform vision,” stated
Georgieva. She called on the nation to sustain its commitment to the reform agenda to ensure that the achievements to date are durable and inclusive for all Sri Lankans. The IMF remains committed to supporting Sri Lanka through technical assistance and periodic evaluations, guiding the country in strengthening its economic framework.
The positive feedback from the International Monetary Fund (IMF) is a significant endorsement for Sri Lanka, signalling growing international confidence in its recovery trajectory. Experts assert that ongoing collaboration with international partners, prudent fiscal management, and transparent governance will be crucial to sustaining progress and ensuring long-term prosperity for Sri Lanka’s citizens.
She stated that inflation has decreased to 2%, economic growth has rebounded to 5% in 2024, and an estimated 5% growth rate is expected in 2025.
Some key achievements include restoring fiscal strength, re- establishing macroeconomic and financial stability, and reducing inflation from 70% to 2%.
Economic growth is recuperating and is anticipated to persist. Progress on debt restructuring is nearing completion.
Important reforms have been implemented, including a new Central Bank Act and a Governance Diagnostic Assessment to tackle corruption.
However, Georgieva emphasised that the recovery is still fragile and urged Sri Lanka to remain focused on reforms.
Sri Lanka’s future economic growth looks promising, with the IMF projecting a 3.1% growth rate for 2026. This is a gradual return to its long-term trend, following a strong recovery from the recent economic crisis.
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