The government treasury has received a fresh US$695 million disbursement from the International Monetary Fund (IMF) following the successful completion of the Fifth and Sixth Reviews of its Extended Fund Facility (EFF) programme.
The latest release brings total IMF disbursements under the programme to approximately US$2.4 billion and signals continued confidence in the country’s economic reform agenda.
However, alongside the approval, the IMF also issued a caution about emerging external risks that could affect the pace of economic recovery.
IMF Deputy Managing Director and Acting Chair Kenji Okamura said Sri Lanka’s implementation of reforms had remained strong despite difficult circumstances. According to him, progress under the programme helped preserve economic resilience and provided room to respond to challenges including Cyclone Ditwah and the ongoing conflict in the Middle East.
At the same time, Okamura warned that the Middle East conflict has significantly worsened the country’s economic outlook.
He noted that economic growth is now projected to slow to around 3% in 2026, while higher global oil prices are expected to increase inflationary pressures and weaken the external sector. The IMF also expects lower tourism earnings to affect foreign exchange inflows.
His remarks highlight a key challenge facing policymakers. While domestic reforms have improved economic stability and secured continued international support, external developments remain capable of influencing growth, inflation, fuel costs, tourism performance, and foreign exchange earnings.
Okamura further noted that uncertainty surrounding the duration and intensity of the conflict continues to create downside risks for the economy.
The latest disbursement provides additional support for Sri Lanka’s reform programme, but the IMF’s assessment suggests that managing global economic shocks may become increasingly important as the country moves into the next phase of recovery.
International Monetary Fund (IMF) Ministerial Update Numbers & Indexes
Last modified: June 9, 2026
