IMF Executive Board to consider Sri Lanka’s 5th EFF review in December

Sri Lanka
By Editor_1

COLOMBO – The Executive Board of the International Monetary Fund (IMF) is scheduled to meet on December 15, 2025, to review and approve the fifth tranche of Sri Lanka’s ongoing Extended Fund Facility (EFF) program, the global lender announced.

The meeting follows the staff-level agreement reached in October between IMF officials and the Sri Lankan authorities on the economic policies and reforms required to complete the fifth review of the program. The agreement confirms that Sri Lanka continues to meet, or exceed, multiple benchmarks set under the four-year reform package.

Once the Executive Board grants approval, Sri Lanka will gain access to approximately US$347 million in the next disbursement, providing further support for the country’s stabilization and recovery efforts.

In its latest assessment, the IMF noted that Sri Lanka’s reform implementation has remained on track, contributing to a steady, broad-based recovery. Inflation has moved closer to the central bank’s target range, foreign exchange reserves have continued to build up, and both real GDP growth and government revenue mobilization have surpassed earlier projections.

The IMF highlighted these indicators as evidence of improving macroeconomic fundamentals, supported by structural reforms, tighter fiscal discipline, and more consistent monetary policy.

Sri Lanka’s Extended Fund Facility, amounting to SDR 2.3 billion (approximately US$3 billion), was initially approved by the IMF Executive Board on March 20, 2023, at a time when the country was grappling with its worst economic crisis in decades. The EFF aims to restore macroeconomic stability, rebuild external buffers, strengthen public finances, and lay the groundwork for long-term, sustainable economic growth.

The upcoming fifth review is viewed as a critical milestone in Sri Lanka’s reform trajectory, ensuring continued financial assistance from the IMF and reinforcing international confidence in the country’s recovery path.

-ENCL

Editor_1
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