In a positive development for Sri Lanka’s economy, the International Monetary Fund (IMF) has reported that the country’s macroeconomic policy reforms have begun to bear fruit. The IMF’s second review of Sri Lanka’s $2.9 billion bailout program is set for June 12th, at which time the Executive Board will discuss the country’s progress and the Article IV Consultation. The IMF has noted that Sri Lanka has made significant progress on debt restructuring, having completed domestic debt operations and holding discussions with external official creditors. Negotiations with external commercial creditors are expected to be concluded soon, paving the way for agreements consistent with program parameters. The IMF has also highlighted Sri Lanka’s commendable economic outcomes, including rapid disinflation, robust reserve accumulation, and initial signs of economic growth while preserving financial stability. The country’s next steps include securing agreements with external commercial creditors and implementing agreements with official creditors. The progress made so far has raised expectations that Sri Lanka will be able to meet the IMF’s program parameters and continue its path towards economic recovery.
