{
  "title": "Sri Lanka: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Financing Assurances Review, and Monetary Policy Consultation Clause-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka",
  "publication": "IMF Staff Country Reports, March 3, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/03/03/sri-lanka-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-562827",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2025/03/03/sri-lanka-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-562827",
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  "summary": "This paper presents Sri Lanka’s Third Review under the Extended Arrangement under the Extended Fund Facility, Financing Assurances Review, and Monetary Policy Consultation Clause. Performance under the program has been strong.",
  "sections": [
    {
      "heading": "Executive summary and program performance",
      "content": "- The paper presents Sri Lanka’s Third Review under the Extended Arrangement under the Extended Fund Facility, Financing Assurances Review, and Monetary Policy Consultation Clause.\n- Performance under the program has been strong.\n- All quantitative targets for end-December 2024 were met, except the indicative target on social spending.\n- Most structural benchmarks due by end-January 2025 were either met or implemented with delay.\n- The recent successful completion of the bond exchange is a major milestone toward restoring debt sustainability.\n- Reform efforts are bearing fruit with the recovery gaining momentum.\n- As the economy is still vulnerable, sustaining the reform agenda is critical to put the economy on a path toward lasting recovery and debt sustainability."
    },
    {
      "heading": "Fiscal policy and revenue mobilization",
      "content": "- Sustained revenue mobilization is crucial to restoring fiscal sustainability and ensuring that the government can continue to provide essential services.\n- Continued implementation of fiscal reforms is implied as necessary to support debt sustainability following the bond exchange."
    },
    {
      "heading": "Structural reforms and governance",
      "content": "- Prolonged structural challenges need to be addressed to unlock Sri Lanka’s long-term potential.\n- Steadfast implementation of the governance reforms is emphasized as critical."
    },
    {
      "heading": "Risk assessment and outlook",
      "content": "- Recovery is gaining momentum.\n- The economy remains vulnerable, implying downside risks if reforms are not sustained."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit, Crime, Money, Public debt, Revenue administration\n- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), COT. authorities, Credit, Global, IMF staff estimate, staff appraisal, tax concession, tax exemption\n\nSource: Sri Lanka: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Financing Assurances Review, and Monetary Policy Consultation Clause-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka (March 3, 2025).\n\n---\n\n Content in this bundle\n\n- 1lkaea2025001-print-pdf\n  - 1lkaea2025001-print-pdf (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1lkaea2025001-print-pdf (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: March 3, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229003636.002",
    "The paper presents Sri Lanka’s Third Review under the Extended Arrangement under the Extended Fund Facility, Financing Assurances Review, and Monetary Policy Consultation Clause.",
    "Performance under the program has been strong.",
    "All quantitative targets for end-December 2024 were met, except the indicative target on social spending.",
    "Most structural benchmarks due by end-January 2025 were either met or implemented with delay.",
    "The recent successful completion of the bond exchange is a major milestone toward restoring debt sustainability.",
    "Reform efforts are bearing fruit with the recovery gaining momentum.",
    "As the economy is still vulnerable, sustaining the reform agenda is critical to put the economy on a path toward lasting recovery and debt sustainability.",
    "Sustained revenue mobilization is crucial to restoring fiscal sustainability and ensuring that the government can continue to provide essential services.",
    "Continued implementation of fiscal reforms is implied as necessary to support debt sustainability following the bond exchange.",
    "Prolonged structural challenges need to be addressed to unlock Sri Lanka’s long-term potential.",
    "Steadfast implementation of the governance reforms is emphasized as critical.",
    "Recovery is gaining momentum.",
    "The economy remains vulnerable, implying downside risks if reforms are not sustained.",
    "Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit, Crime, Money, Public debt, Revenue administration",
    "Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), COT. authorities, Credit, Global, IMF staff estimate, staff appraisal, tax concession, tax exemption",
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