IMF Commends Sri Lanka’s Economic Recovery, Highlights Positive Growth Trends

The International Monetary Fund’s (IMF) Senior Mission Chief for Sri Lanka, Peter Breuer, has praised Sri Lanka’s economic recovery in recent years, stating that improving economic opportunities will lead to increased income and poverty reduction. He emphasized that these positive developments will encourage people to remain in Sri Lanka rather than emigrate.

Speaking during a press conference on the IMF Executive Board’s completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) program, Breuer highlighted the significant increase in the country’s reserves under the program. “They have reached about half of the program objectives already, which is very impressive,” he remarked.

Reflecting on Sri Lanka’s economic turnaround, Breuer recalled the dire conditions of mid-2022, when citizens faced long queues for fuel, cooking gas, food, and medication. He noted that during the economic crisis, the nation lost nearly 10% of its economic activity.

However, since the implementation of the EFF program in 2023, Sri Lanka has recovered 40% of the income lost over the past five years. The latest economic growth rate of 5.5% further underscores the nation’s steady recovery. “Things are turning around significantly in Sri Lanka, and that will have an impact on the indicators that we care about, such as poverty,” Breuer added.

He reiterated that as economic stability returns, income levels will improve, and poverty will decline, making Sri Lanka an attractive place to stay. He also expressed optimism that those who emigrated due to economic hardships might find new opportunities back in their home country.

The IMF’s positive assessment comes as Sri Lanka continues its efforts to strengthen its financial position and boost investor confidence, signaling a hopeful outlook for the nation’s future economic trajectory.

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