News
IMF to release next tranche of Extended Fund Facility
The International Monetary Fund yesterday said it had reached a staff-level agreement on the fifth review under Sri Lanka’s extended fund facility arrangement.
“Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$347 million in financing,” a statement issued by the IMF said.
An IMF mission team led by Evan Papageorgiou visited Sri Lanka from September 24 to yesterday (9) to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the Extended Fund Facility (EFF) arrangement. At the end of the mission, Papageorgiou issued the following statement:
“IMF staff and the Sri Lankan authorities have reached staff-level agreement on the Fifth Review under the 4-year Extended Fund Facility (EFF) arrangement. The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.
“The staff-level agreement is subject to IMF Executive Board approval, contingent on: (i) Parliamentary approval of the 2026 Appropriation Bill in line with program parameters and (ii) the completion of the financing assurances review, to confirm multilateral partners’ financing contributions and assess adequate progress with debt restructuring.
“Upon completion of the Executive Board review, Sri Lanka would have access to SDR 254 million (about US$347 million), bringing the total IMF financial support disbursed under the arrangement to SDR 1,524 million (about US$2.04 billion).
“Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes. The economy grew by 4.8 percent y/y in 2025H1 and we expect growth to remain solid in 2025. Inflation has returned to positive territory and in September prices rose by 1.5 percent y/y. Gross official reserves reached US$6.1 billion at end-September 2025. Fiscal performance in 2025H1 has been strong, primarily supported by taxes on motor vehicle imports. Debt restructuring is nearing completion.
“Program performance is strong, underpinned by good fiscal revenue outcomes and improvements in external resilience. The reform momentum should be sustained to safeguard macroeconomic stability and enhance Sri Lanka’s resilience to shocks. This is particularly important given heightened downside risks to the economy from persistent trade policy uncertainty and geopolitical tensions.
“The 2026 Budget should be in line with program parameters to continue building fiscal space on the back of strong revenue measures and prudent spending execution. This requires sustained efforts to improve tax compliance, broaden the tax base, and tackle revenue leakages by strengthening the tax exemption frameworks. Enhancing public financial management, avoiding the reemergence of expenditure arrears, and promoting high-quality and efficient public expenditure, including by addressing capital spending under-execution, will contribute to safeguarding fiscal discipline and transparency.
“At the same time, it is instrumental to maintain cost-recovery energy pricing, strengthen the governance of state-owned enterprises (SOEs), and resolve their legacy debts to ensure financial viability and minimize fiscal risks. Upcoming bills on public-private partnerships, SOEs, public procurement, and public asset management should be consistent with the Public Financial Management Act and best practices.
“Protecting the poor and vulnerable should remain a priority. There is scope to strengthen the design of the welfare benefit payment scheme to improve the targeting, adequacy, and coverage of social spending.
“Accelerating the finalization of bilateral debt agreements with the remaining official and commercial creditors is key to restoring debt sustainability and improving investor confidence. A swift operationalization of the Public Debt Management Office will be a key step towards prudent debt management practices.
“It is important for monetary policy to remain data-driven and to ensure price stability. Central bank independence should continue to be safeguarded, including by continuing to refrain from monetary financing of the budget. Efforts should continue to rebuild external buffers through reserve accumulation to adequate levels, while allowing for exchange rate flexibility. Resolving non-performing loans, strengthening governance and oversight of state-owned banks, and improving the insolvency and resolution frameworks are important to foster credit growth and safeguard financial sector stability.
“It is crucial to speed up the implementation of governance reforms outlined in the government’s action plan. Advancing procurement reforms, strengthening the AML/CFT framework, prioritizing anti-corruption measures in revenue administration, including digitalization, and implementation of electronic asset declarations will contribute to reducing corruption vulnerabilities. Recruitment at the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) should be accelerated and CIABOC’s independence safeguarded in line with the Anti-Corruption Act. Structural reforms will be key to lifting Sri Lanka’s potential growth.
“The IMF team held meetings with President and Finance Minister Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, Labor Minister and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, Minister of Industry Sunil Handunnetti, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Dr. Harshana Suriyapperuma, Senior Economic Advisor to the President Duminda Hulangamuwa, Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya, Governor of Central Province Prof. Sarath Abayakon, and other senior government and CBSL officials. The IMF team also met with parliamentarians, representatives from the private sector, civil society organizations, and development partners.
“We would like to thank the authorities for the excellent collaboration during the mission, including while visiting the Central and Uva provinces. We reaffirm our commitment to support Sri Lanka achieve strong, sustainable growth.”
News
Politics is not something separate from development. It shapes every choice we make in governance – PM
Prime Minister Dr. Harini Amarasuriya stated that politics is not something separate from development and it shapes every choice we make in governance, while addressing the 60th anniversary commemoration of the Institute of Development Studies (IDS), University of Sussex, Brighton. during her official visit to the United Kingdom.
The Prime Minister and the accompanying delegation arrived at London’s Heathrow Airport at 8.00 p.m. Sri Lanka time on Monday [18 May], commencing the official visit to the United Kingdom.
The delegation was warmly received at Heathrow Airport by Sri Lanka’s High Commissioner to the United Kingdom, Nimal Senadheera, together with the Special Representative to the Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom and former British High Commissioner to Sri Lanka, Richard Wildash, along with other diplomatic officials.
On the following morning, the Prime Minister arrived at the University of Sussex in Brighton, where she was received by Professor Anu Joshi, Director of the Institute of Development Studies, Professor Mick Moore, and senior representatives of the University of Sussex.
Addressing the public event, the Prime Minister reflected on the relationship between politics, governance, and development, drawing from Sri Lanka’s recent political and economic experiences. She emphasized the challenges of balancing governance, economic recovery, social protection, and institutional reform while responding to public expectations and maintaining democratic accountability.
The Prime Minister also highlighted the government’s ongoing policy focus on recognizing paid and unpaid care work as a central component of the national economy, particularly the contribution and challenges faced by women within the care sector.
During the visit, Prime Minister Dr. Harini Amarasuriya is also expected to address a session at the Oxford School of Global and Area Studies at the University of Oxford, followed by an interactive discussion with scholars and students.
During the visit, the Prime Minister is also expected to meet senior representatives of the United Kingdom government, including Yvette Cooper, the Foreign Secretary of the United Kingdom, and Bridget Phillipson, the Secretary of State for Education of the United Kingdom. She is also expected to meet Shirley Ayorkor Botchwey, Secretary-General of the Commonwealth.

[Prime Minister’s Media Division]
News
Govt. committed to fulfilling aspirations of war heroes who liberated country: AKD
The government was committed to fulfilling the aspirations of war heroes who liberated the country, President Anura Kumara Dissanayake said yesterday, addressing the 17th National War Heroes’ Commemoration Ceremony held in Battaramulla.
The members of the security forces had made a tremendous contribution towards bringing relief to the people and their sacrifices had to be honoured not only with remembrance but also through action to rebuild the nation, President Dissanayake said, stressing that everything possible had to be done to ensure that the people would not suffer due to conflicts again.
Praising the armed forces for the role they played in disaster response and national emergencies, the President said the government was working hard to strengthen the country’s international standing while ensuring the rule of law and judicial independence.
Sri Lanka belonged to all communities and there should be no division along ethnic lines.
President Dissanayake added that the government’s focus was to prevent the recurrence of conflict and to build a democratic society where equality before the law was guaranteed and all citizens had equal opportunity regardless of status.
News
H’tota elephant management reserve essential to halt ecological destruction and rising human-elephant conflict – Minister Patabendi
Environment Minister Dhammika Patabendi yesterday sounded a strong warning over the rapid destruction of elephant habitats in the Hambantota region, declaring that the proposed Hambantota Elephant Management Reserve was no longer an option but an urgent national necessity to prevent a deepening environmental crisis.
Addressing a media briefing convened to create public awareness on the reserve, Dr. Patabendi said decades of political interference, illegal land grabs, deforestation and unplanned development had pushed Sri Lanka’s elephant population and rural communities into a dangerous confrontation.
“Sri Lanka is witnessing an environmental tragedy unfold before our eyes. Forests are shrinking, elephant corridors are being blocked, and wild elephants are being forced into villages and farmlands in search of food and water,” the Minister said.
He stressed that the Hambantota region had become one of the country’s most critical human-elephant conflict hotspots due to aggressive land conversion and irresponsible exploitation of natural ecosystems.
“The elephant is paying the price for human greed and shortsighted planning. If we continue to destroy forests in the name of development without ecological discipline, the consequences will be catastrophic not only for wildlife, but also for people,” he warned.
Dr. Patabendi said the proposed Elephant Management Reserve would serve as a scientifically managed buffer to protect vital elephant corridors, regulate land use, and reduce deadly encounters between elephants and humans.
He noted that Sri Lanka continued to record alarming numbers of elephant and human deaths annually, describing the situation as a “national environmental emergency.”
“Human-elephant conflict is no longer merely a wildlife issue. It is directly linked to food security, rural safety, water resources and ecological stability. The country cannot continue to address this crisis with temporary fences and political rhetoric,” he said.
The Minister also took aim at illegal encroachments and destructive activities within sensitive forest areas, warning that strict action would be taken against those responsible for environmental destruction.
“There are organised attempts to exploit forest lands for private interests while ignoring the irreversible damage caused to biodiversity and ecosystems. Such actions cannot be tolerated any longer,” he said.
Dr. Patabendi stressed that sustainable development could not be achieved at the expense of forests and wildlife, adding that environmental conservation must become a central pillar of national policy rather than an afterthought.
Environmentalists said Sri Lanka’s elephant population was increasingly under pressure due to shrinking habitats, fragmented migration routes and expanding human settlements.
The Minister called on politicians, state institutions and the public to support long-term conservation measures instead of promoting short-sighted solutions driven by vested interests.
“We have reached a decisive moment. Either we protect these ecosystems now or future generations will inherit a country stripped of its forests, wildlife and ecological security,” he warned.
The Environment Ministry is expected to initiate further scientific consultations and stakeholder discussions before moving ahead with the reserve’s implementation framework.
By Ifham Nizam
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