IMF Commends Sri Lanka’s Fiscal Progress as Seventh Review Continues
COLOMBO, September 18, 2026 — The International Monetary Fund (IMF) has commended Sri Lanka’s recent progress in maintaining fiscal discipline, increasing government revenue and attracting foreign investment, as the Fund’s latest review of the country’s economic reform programme continues.
IMF Mission Chief for Sri Lanka Evan Papageorgiou made the observations during a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat on Thursday, as the IMF delegation conducts the Seventh Review of Sri Lanka’s Extended Fund Facility (EFF) programme alongside the 2026 Article IV Consultation.
The IMF delegation is scheduled to remain in Sri Lanka until September 23. The review is assessing recent economic developments and the country’s progress under the IMF-supported reform programme.
According to the President’s Media Division, Papageorgiou highlighted the importance of maintaining the economic stability achieved so far as Sri Lanka moves towards 2027 and beyond.
President Dissanayake said recent economic indicators point to a period of greater economic stability and that the Government intends to build on this foundation to support further economic transformation and improvements in living standards.
The President also pointed to Sri Lanka’s 4.2% economic growth recorded in the second quarter of 2026, describing the expansion as an indication of the economy’s continuing recovery.
Government revenue collection has remained a key element of Sri Lanka’s fiscal reform efforts. The IMF has previously stressed the need for continued improvements in tax compliance, a broader tax base and stronger public financial management to preserve fiscal sustainability.
The latest discussions also covered Sri Lanka’s social welfare programme, which remains an important component of the IMF-supported reform agenda. The IMF delegation acknowledged progress in implementing the programme, while issues affecting households from higher energy costs linked to developments in the Middle East were also discussed.
Sri Lanka’s economic recovery is taking place against a backdrop of continued external risks. In its June assessment, the IMF noted that the Middle East conflict had affected the country through higher energy prices and other external pressures, while emphasising the need to maintain reform momentum and protect fiscal and external stability.
The outcome of the ongoing Seventh Review will be closely watched as Sri Lanka continues implementing its IMF-supported economic reform programme. The review is expected to provide a further assessment of the country’s fiscal position, economic performance and progress on key reform commitments.
The IMF mission is scheduled to conclude its current visit on September 23, when further details on its assessment are expected to emerge.
