Written by Jiffry• September 26, 2026• 10:17 am• Business • Views: 15

Sri Lanka Plans to Exit Current IMF Program in March 2027

Minister Bimal Rathnayake says the government plans to complete the current IMF program and exit the arrangement when it expires in March 2027.

However, he said this would not mean ending Sri Lanka’s relationship with the IMF or the World Bank.

Speaking in a television interview, Rathnayake said the government does not currently see a need for another IMF program linked to debt restructuring after the existing arrangement ends.

“We will definitely exit this agreement,” Rathnayake said. He added that Sri Lanka would continue dealing with the IMF and World Bank as international institutions.

Two IMF Reviews Remain

The current four-year Extended Fund Facility (EFF) was approved in March 2023 and is scheduled to expire on March 19, 2027.

Two more reviews remain.

The IMF’s latest mission ended on September 23 without a staff-level agreement on the seventh review. The Fund said discussions with the government would continue in the near term on the policies and parameters needed to complete the review.

The eighth review is scheduled for March 2027 and will be the final review under the current program.

IMF Mission Chief Evan Papageorgiou has also said that any decision on a successor program would be for the Sri Lankan Government to make.

Government Questions Existing Debt Terms

Rathnayake also raised concerns about some terms included in Sri Lanka’s debt restructuring arrangements.

He referred to mechanisms under which payments to some creditors can change depending on the country’s economic performance.

“If we grow the economy, the amount of debt we have to repay increases,” he said.

Rathnayake argued that such payments could reduce the resources available to pass the benefits of economic growth on to the public.

He said the government is examining financial-market mechanisms that could reduce what it considers the adverse effects of some existing debt terms.

What Happens After March 2027?

Rathnayake’s comments indicate that the government currently intends to move beyond the EFF without seeking another IMF support linked to debt restructuring.

That does not mean the country would stop working with the IMF.

Instead, the government expects to maintain its normal engagement with the Fund after the current financing arrangement ends.

The immediate issue remains completion of the current program. The IMF said discussions on the seventh review are continuing, with the two sides working towards a staff-level agreement.