Sri Lanka: 2024 Article IV Consultation and Second Review Under the Extended Fund Facility, Request for Modification of Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka

IMF Staff Country Reports, June 13, 2024

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Canonical URL: Sri Lanka: 2024 Article IV Consultation and Second Review Under the Extended Fund Facility, Request for Modification of Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka

Performance under the program has been strong.
All quantitative targets for end-December 2023 were met, except the indicative target on social spending.
Most structural benchmarks due by end-April 2024 were either met or implemented with delay.
The economy is still vulnerable and the path to debt sustainability remains knife-edged.
Sustaining the reform momentum and efforts to restructure debt are critical to put the economy on a path toward lasting recovery and debt sustainability.

Restore macroeconomic stability and debt sustainability.
Maintain price stability.
Safeguard financial stability.
Rebuild external buffers.
Implement growth-oriented structural reforms, including by strengthening governance.
Authorities need to press ahead with efforts to address structural challenges to unlock long-term potential.

Subject: Asset and liability management, Credit, Debt restructuring, International organization, Monetary policy, Money, Public debt, Revenue administration
Keywords: Asia and Pacific, authorities' resolve, Credit, Debt restructuring, Global, inflation expectation, public finance, ROSC update, Sri Lankan authorities, Sri Lankan authority, TA mission