The IMF Executive Board completed the combined Fifth and Sixth Reviews of the Extended Fund Facility for Sri Lanka, providing the country with immediate access to SDR508 million (about US$695 million) to support economic policies and reforms.
Performance under the program was generally strong. The prior actions on restoring fuel and electricity cost-recovery pricing were met. The continuous performance criteria on no new external payment arrears and on not imposing or intensifying import restrictions were not observed. All end-December 2025 quantitative performance criteria were met. Most structural benchmarks were met or implemented with a delay.
The war in the Middle East and the aftermath of Cyclone Ditwah pose downside risks, but the economy is expected to remain resilient. Hard-won gains from the reform program have enabled swift policy responses to support the economy and help protect the vulnerable.
