President sets deadlines for key SOE, PPP and Customs laws

The International Monetary Fund has said it remains willing to assist Sri Lanka after its current programme ends in March 2027. Deputy Director of the IMF’s Asia and Pacific Department Sonali Jain-Chandra said the form of any future engagement would be chosen in discussion with Sri Lankan authorities. Options include a new financing arrangement, policy advice, surveillance and capacity development, according to The Island.

The Fund has also urged Sri Lanka to focus on completing the ongoing Extended Fund Facility programme, which has two reviews left, Daily FT reported. A staff-level agreement on the Seventh Review was reached in early October and is expected to go before the IMF Executive Board in the coming weeks. Jain-Chandra said a further review mission is expected before the programme expires and stressed continuing work on reforms and macroeconomic stability.

President Anura Kumara Dissanayake has said Sri Lanka is open to a follow-on IMF programme if it promotes economic growth as well as stability. At an economic and investment summit in Colombo on Monday, he said Finance Ministry officials and the Central Bank governor were discussing what such an arrangement could involve, with a decision expected within the remaining six months of the current programme and taking external shocks into account.

Jain-Chandra said economic conditions had improved since the crisis, citing stronger fiscal performance, government revenue that had doubled during the reform period, largely completed debt restructuring and 11 consecutive quarters of economic growth. The President said credit ratings had improved but reserves still needed to rise; he cited reserves of US$6.9 billion at the end of August and warned that fuel imports were putting pressure on the economy. He also described government support for fuel, electricity and gas supply during the Middle East conflict and said the economy could not absorb another shock.