IMF’s Asia-Pacific Department Director Krishna Srinivasan stated in Washington that the International Monetary Fund is actively preparing for the next review of the Extended Fund Facility program in collaboration with Sri Lanka’s new government.
Srinivasan noted that the IMF is largely satisfied with the points discussed so far with Sri Lanka’s administration and is optimistic about progressing swiftly to the upcoming third review. Currently, a Sri Lankan delegation, including the Central Bank Governor, the Secretary to the Ministry of Finance, and Presidential Economic Advisor Duminda Hulugamuwa, is actively involved in these discussions.
According to Srinivasan, further discussions are necessary on several priority areas, including social security initiatives under the new government. These negotiations will continue this week in Washington.
Srinivasan highlighted that there is alignment with Sri Lankan authorities on preserving the hard-won achievements made under the current program and building on them. The next step for Sri Lanka will be reaching a formal agreement with all creditors.
“This is a significant step forward, but certainly not the last. There remains substantial work to ensure the continuity of reforms. Much distance remains before achieving a robust, sustainable economic framework,” Srinivasan commented.
