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Sri Lanka Economy Resilient but Risks Remain Tilted to Downside, IMF Says
The IMF said Sri Lanka’s economy expanded 4.2% in the second quarter as talks continue on policy steps for the next review.
- On Wednesday, an International Monetary Fund team led by Evan Papageorgiou concluded a visit to Sri Lanka to discuss the Seventh Review of the Extended Fund Facility and the 2026 Article IV Consultation.
- The IMF noted Sri Lanka's economy remains resilient despite successive shocks, though the nation faces downside risks from global trade policy, Middle East war uncertainty, and broader external pressures.
- Economic activity expanded 4.2 percent in the second quarter of 2026, gross official reserves reached $6.9 billion by August, and headline inflation rose to 8 percent due to global oil price shocks.
- To sustain stability, the IMF urged officials to broaden the tax base, rationalize incentives, and maintain energy cost-recovery pricing to minimize fiscal risks from state-owned enterprises.
- "Shifting from stabilization to transformation requires sustained momentum on structural reforms to reduce poverty and lift living standards through strong and inclusive growth," the IMF said, as discussions toward staff-level agreement continue.
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IMF says Sri Lanka economy grows 4.2% despite oil shock and global risks
The IMF said Sri Lanka's economy grew 4.2 per cent in the second quarter despite fresh shocks. It warned that inflation, global uncertainty and climate-linked risks still demand firm reforms and stronger safety nets.
·Noida, India
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Channel News Asia+5 Reposted by 5 other sources
Sri Lanka economy resilient but risks remain tilted to downside, IMF says
Sept 23 : The International Monetary Fund said on Wednesday that Sri Lanka's economy continues to show resilience amid successive shocks but is still facing risks tilted to the downside, as its staff concluded a visit to the South Asian island nation.• The island nation, backed by a $2.9 billion programme,
·Singapore, Singapore
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Total News Sources15
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
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