The International Monetary Fund (IMF) has said that the completion of Sri Lanka’s combined Fifth and Sixth reviews under its Extended Fund Facility (EFF) is subject to approval by its Executive Board, with a meeting expected in the coming weeks.

Responding to questions at a press briefing held on 14 May, IMF Communications Department Director Julie Kozack said a staff-level agreement between IMF staff and Sri Lankan authorities was reached on 9 April.

She said several prior actions were required before the programme could be presented to the Board, including the restoration of cost-recovery pricing in electricity and fuel, alongside measures to protect vulnerable groups, as well as completion of financing assurances.

Kozack noted that once the review is approved, Sri Lanka would gain access to about US$700 million in financing.

Asked whether the government’s current fuel subsidy, including a 100-rupee per litre diesel subsidy, is consistent with the IMF’s cost-recovery pricing framework, Kozack did not directly comment on the specific measure. Instead, she reiterated that the programme requires both cost-recovery pricing reforms and protections for vulnerable populations.

She also said Sri Lanka has faced “two very large shocks” recently, referring to Cyclone Ditwah and broader external impacts from the Middle East conflict, adding that these have affected the economy and the population.

Despite this, she said Sri Lanka’s reform programme was showing results, pointing to strong fiscal performance in 2025, progress in debt restructuring, 5 per cent economic growth, and a return of inflation to positive territory after a period of deflation.

She further said the IMF remains committed to supporting Sri Lanka as it continues its reform agenda, reaffirming that the institution’s engagement with the country remains strong as it works alongside the authorities to maintain economic stability and progress. 

IMF Press Briefing: https://www.imf.org/en/news/articles/2026/05/14/tr051426-imf-regular-briefing-may-14-2026 (Newswire)

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A staff team of the International Monetary Fund (IMF) will visit Sri Lanka from March 26 to April 09, IMF Communications Director Julie Kozack announced.

Addressing the IMF press briefing, Kozack said the visit will focus on discussing economic policies. 

“The aim will be to complete a combined fifth and sixth review of the IMF-supported program while assessing the potential impact of the Middle East conflict on the economy,” she said. 

Kozack further said that as part of the discussion, the team will be engaging with the authorities to better understand what the potential impact of the Middle East conflict could be on Sri Lanka’s economy. 

“When the team returns, it will have an updated assessment of Sri Lanka’s economy and how the IMF can continue to support Sri Lanka. 

The IMF Communications Director went on to note that the IMF is actively engaging with countries affected by the Middle East conflict, assessing global economic risks and standing ready to provide support.  

“We are engaging very actively with our membership. We are talking to them about how we see, as I explained here, how we see some of the impacts on the, on the global economy. But also asking them, how can we best support them at this time, using the full range of tools available to us, including through our policy advice, capacity development and also financial support as needed.

We have engaged with finance ministers and central bank governors in many countries and regions. We’ve also engaged with regional institutions to discuss and share perspectives on the implications of the conflict and again, how the Fund can best provide support. The overall impact, of course, is going to depend very much on the duration and intensity of the conflict.

We will provide an updated assessment in our World Economic Outlook in April, which will be comprehensive for the individual country level and also for global and regional economies,” Kozack added. (Newswire)

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The International Monetary Fund’s (IMF) communications director, Julie Kozack, has announced that an IMF fact-finding mission will visit Sri Lanka from January 22 to 28. 

The team is expected to assess the damage caused by the recent Cyclone Ditwah.

Kozack further said that they will also hold policy discussions related to the country’s Extended Fund Facility (EFF) program. (Newswire)

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The International Monetary Fund (IMF) says the Sri Lankan Government remains committed to its Economic Reforms Programme objectives, bringing it closer to the next tranche of IMF funding.

The IMF’s Communications Department Director, Julie Kozack, said Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes and that performance remains strong overall.

“On 25 April this year, the IMF and Sri Lanka reached a staff-level agreement on the 4th review of Sri Lanka’s Economic Programme. Completion of the review is pending approval of the IMF’s Executive Board, and it is contingent on completing prior actions,” she said. 

Julie Kozack further said the IMF team is also closely engaged with Sri Lankan authorities to assess measures recently announced by the electricity regulator on 11 June, which include a 15% electricity tariff increase and the publication of guidelines for a revised bulk supply transaction account. 

“Both are prior actions. Once the review is completed by the IMF Executive Board, Sri Lanka will have access to around US$ 344 million in financing. The IMF will announce the board date in due course,” she added. 

The IMF’s Communications Department Director made the remarks while addressing the weekly press briefing held yesterday. (Newswire)

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The Director of the International Monetary Fund’s (IMF) Communications Department, Julie Kozack has highlighted several commendable objectives reached by the Sri Lankan Government.

Julie Kozack described the overall implementation of the IMF program as strong.

The IMF staff and the Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the second review of the 4-year EFF-supported program and the 2024 Article IV Consultation. 

Once the review is approved by IMF Management and completed by the IMF Executive Board, Sri Lanka will have access to about US$337 million in financing.

Commenting on Sri Lanka’s economic performance, Kozack said macroeconomic policies in Sri Lanka are starting to bear fruit. 

“Commendable outcomes include a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, while also preserving stability in the financial system. Overall, program performance has been strong,” she said. 

On debt restructuring, Kozack revealed that the next steps are to conclude negotiations with external private creditors and to implement the agreements in principle with Sri Lanka’s official creditors. 

“The domestic debt operations are largely completed. The initial debt restructuring negotiations with external bondholders ended in mid-April without an agreement and discussions are continuing with a view to reaching agreement in principle. And on the official creditors’ side, these agreements in principle still need to be finalized,” she added.

The Director of the IMF’s Communications Department, Julie Kozack made the remarks while addressing a press briefing in Washington, DC on Thursday. (Newswire)

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