Sri Lanka : Sixth Review Under the Extended Arrangement Under the Extended Fund Facility and Requests for Waiver of Nonobservance and Modification of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka


International Monetary Fund. Asia and Pacific Dept

Publication Date:

November 4, 2019

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Recent developments and outlook. The Sri Lankan economy is gradually recovering from the severe impact of the Easter Sunday terrorist attacks. Real GDP growth was revised to 2.7 percent in 2019, from 3.6 percent at the fifth review, and is expected to strengthen to 3.5 percent in 2020 as tourism and related activities normalize. The slowdown in growth and decline in imports have significantly impacted fiscal revenues. Program performance. The authorities remain committed to complete the EFFsupported program, despite recent setbacks. While the fiscal targets are no longer within reach, due to the significant revenue shortfalls after the attacks, they are taking corrective actions to mitigate the fiscal underperformance. The end-June net international reserve target was met and the Central Bank of Sri Lanka (CBSL) is committed to rebuild reserves, while allowing for greater exchange rate flexibility. The authorities have also made significant progress on their structural reform agenda, implementing five key structural benchmarks under the program, albeit with some delays.


Country Report No. 19/335


Publication Date:

November 4, 2019



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