Sri Lanka gets $700 mn bailout from IMF
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Colombo: Sri Lanka and the International Monetary Fund (IMF) have reached staff-level agreement on economic policies to conclude the combined fifth and sixth reviews of the island nation's reform programme, the global body said in a statement on Thursday.
An IMF team was here in Sri Lanka from March 26 until April 9 to conduct the combined fifth and sixth reviews of Sri Lanka’s reform programme supported by the global lender's Extended Fund Facility (EFF).
The IMF noted that ongoing economic reforms implemented by Sri Lankan authorities have supported the country’s recovery, with foreign reserves increasing and both real GDP growth and revenue mobilisation exceeding expectations.
"Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes. The economy grew by 5 per cent year on year in 2025. Inflation has returned to positive territory and rebounded to 2.2 per cent year on year in March, and gross official reserves reached $7 billion in end-March 2026," the IMF statement said.
Fiscal performance in 2025 was strong, primarily supported by taxes on motor vehicle imports.
