Sri Lanka has 'no room for policy errors' in economic reforms, IMF says

16/6/2025 13:18

Sri Lanka has made substantial progress on an IMF-supported economic reform program, but more work is needed to reduce the Asian country's 24.5% poverty rate, tackle corruption and reduce domestic debt, the global lender's No. 2 official said Monday.



In remarks prepared for a conference in Colombo, Gita Gopinath, first deputy managing director of the International Monetary Fund, said Sri Lanka's reforms had tested the country's social fabric, but also paved the way for a more resilient future.



Sri Lanka, which plunged into financial crisis due to a record shortage of dollars three years ago, has recovered strongly since securing a four-year program from the global lender in March 2023.



The country in April reached a staff-level agreement with the IMF on a fourth review of the bailout package, which will give it access to about $344 million in financing upon board approval.