Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), emphasized the importance of maintaining reform momentum for Sri Lanka's economic future during discussions held on the sidelines of the IMF/World Bank Spring Meetings in Washington. Meeting with Sri Lanka's State Finance Minister Shehan Semasinghe, Central Bank Governor Nandalal Weerasinghe, and Treasury Secretary Mahinda Siriwardena, Gopinath commended the country on its hard-won economic gains in the past year, while acknowledging the challenges ahead.

President Ranil Wickremesinghe's implementation of rigorous reforms, including higher taxes, under the IMF program has been pivotal. Sri Lanka's agreement with the IMF program followed a declaration of bankruptcy and sovereign debt default in April 2022. Despite these challenges, Semasinghe expressed gratitude for Gopinath's recognition of Sri Lanka's economic progress and affirmed the country's steadfast commitment to its reform agenda.

The IMF program for Sri Lanka has encompassed reforms in state-owned enterprises, the fiscal sector, and the financial sector, with the aim of ensuring debt sustainability. Additionally, the IMF has pledged support to expedite the island nation's debt restructuring process with private creditors, including sovereign bond holders. Sri Lanka's engagement with the IMF comes in the aftermath of an unprecedented economic crisis, compounded by a political crisis that led to the ousting of the former president and his government, who were democratically elected.

IMF official: Sri Lanka’s road ahead is challenging, critical to keep up with reform momentum | Economy Next