Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva and Sri Lankan Prime Minister Harini Amarasuriya have engaged in Discussions on the sidelines of the 2026 World Economic Forum in Davos, Switzerland. 

In a statement, the IMF Asia and Pacific said Sri Lanka and its people have shown remarkable resilience in the face of the devastation from Cyclone Ditwah.

The statement further said that, during the talks, IMF Managing Director Kristalina Georgieva reiterated the IMF’s commitment to supporting Sri Lanka’s economic recovery. (Newswire)

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The International Monetary Fund (IMF) is still assessing the macroeconomic implications of the tariff measures announced by the US Government, IMF Managing Director Kristalina Georgieva said. 

Issuing a statement, Georgieva said the US Tariffs clearly represent a significant risk to the global outlook at a time of sluggish growth. 

“It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” the IMF Managing Director added. 

Georgieva further said the IMF will share the results of its assessment in the World Economic Outlook, which will be published at the time of the IMF/World Bank Spring Meetings later this month. 

The statement comes as the Donald Trump-led US Government recently imposed reciprocal tariffs on several countries, including Sri Lanka. 

A 44% tariff was imposed on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally.

The United States has long been Sri Lanka’s most important export destination, accounting for 23% of total merchandise exports in 2024. Of nearly 3 billion in exports to the U.S. last year, the vast majority—over 70%—came from the apparel sector. (Newswire)

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The Sri Lankan authorities have reaffirmed their determination to persevere with their reform agenda and put the economy on a path of sustained and high growth, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said.

Kristalina Georgieva said the continued support from international financial institutions and other official creditors, together with the participation of bondholders in a debt exchange consistent with debt sustainability, is necessary to underpin the success of these reform efforts.

“The IMF remains a steadfast partner in supporting Sri Lanka and its people and stands ready to assist the country achieve its economic and social reform goals,” she added, issuing a statement on Tuesday about Sri Lanka to Members of the Financial Community.

The IMF Managing Director further noted that the Sri Lankan authorities have been implementing an ambitious economic reform program supported by the IMF, which aims to restore debt sustainability and external viability, underpin broad macroeconomic reforms, and strengthen economic governance and transparency. 

“Sri Lanka’s economic reform program is supported by an SDR 2.286 billion (about US$3 billion), 48-month Extended Fund Facility arrangement, approved by the IMF’s Executive Board on March 20, 2023. The program has gotten off to a good start with the economy recovering, inflation remaining low, and reserves being accumulated. 

“Following the completion of two reviews, IMF staff reached staff-level agreement with the authorities on November 23 for the third review under the arrangement,” she said. 

Kristalina Georgieva further said in June 2024, Sri Lanka agreed on a memorandum of understanding with the Official Creditors Committee (OCC) and reached a final agreement with China EXIM Bank that would deliver a debt treatment by those creditors aimed at restoring debt sustainability consistent with IMF program parameters.

“Building on this progress, and following several months of constructive discussions, the agreements reached by the Sri Lankan authorities with both the Steering Committee of the Ad Hoc Group of external bondholders, and the Local Consortium of Sri Lanka, mark a significant step forward. 

“The terms of these agreements have been assessed by the Fund staff as being in line with the parameters of the IMF-supported program. Anchored by policies under the IMF-supported program, the successful implementation of these agreements will provide significant external debt service relief and further contribute to Sri Lanka’s efforts to restore debt sustainability.

“To capitalize on this momentum, rapid completion of the debt operation with high creditor participation would be vital for the success of the program. In parallel, the authorities continue to finalize other remaining debt restructuring agreements. This collective effort is key to supporting the success of Sri Lanka’s debt restructuring efforts,” the IMF Managing Director concluded. (Newswire)

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