IMF exit or another agreement? President reveals what’s next

President Anura Kumara Dissanayake says Sri Lanka has not ruled out entering another International Monetary Fund (IMF) programme after the current arrangement concludes, but the government has yet to make a final decision.

Speaking during a discussion organized by the Ceylon Chamber of Commerce, the President said the government was examining the possibility of a new agreement focused on economic growth while safeguarding the economic stability achieved under the existing IMF programme.

He said Sri Lanka had made considerable progress in restoring economic stability, although foreign exchange reserves still needed to reach the desired level and further improvements in the country’s credit standing were necessary.

The President said the current IMF programme had largely focused on restoring economic stability following the economic crisis, while the next phase should prioritize growth without undermining that stability.

He said the government would be prepared to enter a new agreement with the IMF if it could reach an understanding that supported the country’s economic growth objectives.

The President also revealed that discussions were underway among senior government economic officials, including the Finance Ministry and Central Bank, to determine what form a possible future IMF programme should take.

However, he stressed that the government had neither decided to completely withdraw from IMF engagement nor committed itself to another programme.

He said a decision would depend on Sri Lanka’s economic position, the strength of its foreign reserves and the extent of potential external economic shocks.

Highlighting the impact of the Middle East conflict, the President warned that Sri Lanka’s fuel import expenditure could reach approximately $6 billion in 2026 if the current trend continued, compared with around $4.4 billion in 2025.

He said such developments demonstrated the uncertainty facing the economy and the need to assess whether Sri Lanka could withstand further external pressures.

The President also defended the government’s cooperation with the IMF, saying there had been relatively few contradictions between the administration’s economic objectives and the commitments made under the existing programme.

He said this had allowed the government to continue implementing the programme without major disagreements.

The President indicated that approximately six months remained under the current arrangement and that the government would use the period to assess its options before deciding on its future relationship with the IMF. (Newswire)

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