{
  "title": "IMF Staff Team Concludes Visit to Sri Lanka",
  "publication": "IMF News, September 23, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/09/23/pr26301-sri-lanka-imf-staff-team-concludes-visit",
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  "summary": "IMF staff and the Sri Lankan authorities held productive discussions relating to the Seventh Review of the IMF’s Extended Fund Facility (EFF), and the 2026 Article IV Consultation.",
  "publishDate": "2026-09-23",
  "sections": [
    {
      "heading": "Mission context and scope",
      "content": "- Mission dates: September 10-23, 2026.\n- Purpose: Discussions relating to the Seventh Review of the IMF’s Extended Fund Facility (EFF) and the 2026 Article IV Consultation.\n- At the end of the mission, IMF staff issued a statement; the mission will not result in a Board discussion.\n- Press Release No. 26/301; statement dated September 23, 2026."
    },
    {
      "heading": "Key economic findings and recent developments",
      "content": "- Economic activity:\n  - Economic activity expanded by 4.2 percent in 2026Q2, marking eleven consecutive quarters of strong growth.\n- Inflation and price environment:\n  - Headline inflation rose to 8 percent y/y in August due to the global oil price shock.\n  - Expectations are broadly anchored.\n- External position and reserves:\n  - Gross official reserves have increased, reaching US$6.9 billion at end-August 2026.\n- Financial sector:\n  - Banks remain well capitalized and profitable.\n- Fiscal and debt:\n  - Fiscal outturn in 2026H1 was strong.\n  - Debt restructuring is largely completed.\n- Downside risks highlighted:\n  - Uncertainty over the duration and intensity of the Middle East war.\n  - Global trade policy.\n  - Impact of El Niño.\n  - Other shock-prone environment risks that could affect macroeconomic stability."
    },
    {
      "heading": "Policy priorities and staff recommendations",
      "content": "- Fiscal and revenue policy:\n  - Develop and implement a medium-term revenue strategy to sustain revenue mobilization while improving the efficiency and fairness of the tax system.\n  - Broaden the tax base and rationalize tax exemptions and incentives.\n  - Strengthen revenue administration to improve tax compliance and support durable revenue gains.\n- State-owned enterprises and energy:\n  - Uphold cost-recovery energy pricing to minimize fiscal risks arising from state-owned enterprises.\n- Public investment and reconstruction:\n  - Address bottlenecks to capital spending execution, including to accelerate cyclone Ditwah-related recovery and reconstruction.\n- Monetary and exchange rate policy:\n  - Monetary policy should stand ready to address inflationary pressures and ensure price stability within the medium-term period in line with the flexible inflation targeting framework.\n  - Greater exchange rate flexibility is key to absorbing shocks and supporting reserve accumulation.\n  - At the first statutory review, it would be prudent to maintain the 5 percent inflation target and the current accountability band. The statement notes that the current target preserves flexibility amid high food and energy price volatility, and convergence toward a lower target could be considered at the next review once a track record of low and stable inflation is established.\n- Governance and anti-corruption:\n  - Preserve the integrity of the anti-corruption legislative framework; select clauses from recently tabled amendments could weaken transparency and accountability.\n- Structural reforms for transformation:\n  - Sustain momentum on structural reforms to foster an enabling business environment and attract investment, including by:\n    - Liberalizing trade.\n    - Modernizing business and labor regulations.\n    - Broadening access to finance.\n    - Advancing digitalization.\n  - Strengthen social safety nets to protect the most vulnerable during the transition from stabilization to transformation.\n- Social inclusion and regional development:\n  - Support investments in connectivity, skills, and sectors such as agriculture, fisheries, tourism, and renewable energy—especially in the Northern Province—to unlock growth and create jobs.\n  - Strengthen social protection so benefits of economic transformation are shared more broadly."
    },
    {
      "heading": "Institutional engagement and outreach",
      "content": "- High-level meetings held with:\n  - His Excellency the President and Finance Minister Anura Kumara Dissanayake.\n  - Honorable Prime Minister Dr. Harini Amarasuriya.\n  - Honorable Labor Minister and Deputy Minister of Finance and Planning Prof. Anil Jayantha Fernando.\n  - Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe.\n  - Secretary to the Treasury Dr. Harshana Suriyapperuma.\n  - Senior Economic Advisor to the President Mr. Duminda Hulangamuwa.\n  - Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya.\n  - Governor of Northern Province Honorable Nagalingam Vethanayahan.\n  - Other senior government and CBSL officials.\n- Outreach included meetings with parliamentarians, private sector representatives, civil society organizations, development partners, and a field visit to Jaffna.\n- Ongoing engagement: Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for timely completion of the Seventh Review.\n\nIMF Communications Department — End-of-Mission press release (staff views), September 23, 2026.\n\n---\n\n Content in this bundle\n\n- gd;dhl;L ehza epjpaj;jpd; mYtyh;fs; ,yq;iff;fhd tpaj;ij\n  - [gd;dhl;L ehza epjpaj;jpd; mYtyh;fs; ,yq;iff;fhd tp[aj;ij (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - gd;dhl;L ehza epjpaj;jpd; mYtyh;fs; ,yq;iff;fhd tp[aj;ij (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Sri Lanka and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2026/09/23/pr26301-sri-lanka-imf-staff-team-concludes-visit"
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    "Published: September 23, 2026",
    "Mission dates: September 10-23, 2026.",
    "Purpose: Discussions relating to the Seventh Review of the IMF’s Extended Fund Facility (EFF) and the 2026 Article IV Consultation.",
    "At the end of the mission, IMF staff issued a statement; the mission will not result in a Board discussion.",
    "Press Release No. 26/301; statement dated September 23, 2026.",
    "Economic activity:",
    "Inflation and price environment:",
    "External position and reserves:",
    "Financial sector:",
    "Fiscal and debt:",
    "Downside risks highlighted:",
    "Fiscal and revenue policy:",
    "State-owned enterprises and energy:",
    "Public investment and reconstruction:",
    "Monetary and exchange rate policy:",
    "Governance and anti-corruption:",
    "Structural reforms for transformation:",
    "Social inclusion and regional development:",
    "High-level meetings held with:",
    "Outreach included meetings with parliamentarians, private sector representatives, civil society organizations, development partners, and a field visit to Jaffna.",
    "Ongoing engagement: Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for timely completion of the Seventh Review.",
    "**gd;dhl;L ehza epjpaj;jpd; mYtyh;fs; ,yq;iff;fhd tp[aj;ij**",
    "[Sri Lanka and the IMF](http://www.imf.org/external/country/LKA/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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