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IMF Deputy MD: Lanka’s economy showing tentative signs of improvement, but recovery remains challenging

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Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions, Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF) said, issuing a statement at the conclusion of his visit to Sri Lanka.

However, the economic recovery remains challenging and it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, he said.

Following are excerpts from his statement: I very much appreciated the constructive discussions I had during my visit, which allowed me to deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to surmount these challenges.

“I welcomed the authorities’ strong commitment to implement their ambitious economic programme which is supported by the IMF. The economic reform programme aims to achieve macroeconomic stabilisation, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable. Sri Lanka’s economy is showing tentative signs of improvement, in part due to the

implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.

“The current economic crisis has its genesis in policy missteps aggravated by external shocks. We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability. I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner. Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtedly, safeguarding the stability of the financial sector is of utmost importance in this process.

“….. While meeting with the Parliamentarians, we discussed the importance of strengthening governance, which is a central pillar of the programme. The hard-won gains of Sri Lankan people who have relentlessly supported the reform effort can only be safeguarded by good governance.

“During my visit to the dockyard, port terminal, and the Port City, I was impressed to see continued economic activity which is a testament to the resiliency of the Sri Lankan economy. I underscored the importance of decisive implementation of structural reforms which can attract investment and boost growth.

“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.



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Over 40 persons injured in head on crash at Talalla

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Over 40 persons have been injured (some critically) as two buses one travelling from Galle to Ampara and the other from Tangalle to Matara crashed head on at Talalla Matara this morning.

The injured have been admitted to the Matara General Hospital and Bathhegama District Hospital.

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Turkiye beat US 3-2 with stoppage-time goal in dead rubber

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Turkiye defender Kaan Ayhan (second from the left) celebrates after scoring his team's winning goal in stoppage time [Aljazeera]

Turkiye beat a heavily changed United States 3-2 with a late Kaan Ayhan winner in an action-packed dead-rubber clash that gave the 2026 World Cup cohosts their sternest test so far ahead of the knockout rounds.

Already crowned the Group D winners, the US arrived in Los Angeles seeking to extend a perfect start with a third win, but with more than an eye on next Wednesday’s last 32 meeting against Bosnia and Herzegovina.

For Turkiye, already eliminated and without even a goal after disastrous losses to Paraguay and Australia, the only objective was to restore some pride.

Despite the low stakes and substantially reshuffled lineups for both teams, a packed Los Angeles Stadium was in a deafening mood.

US fans cheer their team ahead of the 2026 World Cup Group D football match between Turkey and USA at the Los Angeles Stadium in Inglewood on June 25, 2026. (Photo by Etienne LAURENT / AFP)
US fans cheer their team ahead of the Group D match against Turkiye at Los Angeles Stadium in Inglewood on June 25, 2026 [Aljazeera]

For the third game running, the US got off to a dream start. One of nine changes, backup centre-back Auston Trusty, was unmarked at the far post from a US corner, given time to cushion the ball with his left foot, then blast it home.

It was the Celtic defender’s first international goal, and – at just under three minutes – the second-fastest by the US at a World Cup.

But Turkiye did not surrender. Having not scored in 62 efforts across their first two games, it was the 63rd time lucky for the Turks, and their star man, Arda Guler.

The Real Madrid forward duped Mark McKenzie with a clever dummy, allowing the ball to run down the right flank to Baris Alper Yilmaz.

Yilmaz crossed it back to Guler, who smashed it past Matt Turner to equalise in the 10th minute.

INGLEWOOD, CALIFORNIA - JUNE 25: Arda Guler #8 of Turkiye scores his team's first goal during the FIFA World Cup 2026 Group D match between Türkiye and USA at Los Angeles Stadium on June 25, 2026 in Inglewood, California. Alex Grimm/Getty Images/AFP (Photo by ALEX GRIMM / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
Arda Guler, the star of Turkiye’s squad, scored his first World Cup goal [Aljazeera]

With Brad Pitt and Edward Norton among the Hollywood crowd, the game threatened to become a fight club, as Turkiye’s bench rushed the field to protest a foul by the combative Sebastian Berhalter, who earned a yellow.

The Americans thought they had restored the lead, with McKenzie the second US centre-back to put the ball in the net. But his sharp response to Ricardo Pepi’s saved shot was ruled offside.

In the 31st minute, the US found themselves behind for the first time this World Cup.

Guler spotted Eren Elmali’s overlapping run, feeding it to the wing-back, who cut the ball back from the left byline to Yilmaz, who steered it beyond the keeper.

‘Captain America’ returns

US forward #10 Christian Pulisic controls the ball during the 2026 World Cup Group D football match between Turkey and USA at the Los Angeles Stadium in Inglewood on June 25, 2026. (Photo by Patrick T. FALLON / AFP)
After missing the last game with an injury, Christian Pulisic came off the bench against Turkiye [Aljazeera]

The half-time break proved the perfect tonic for the US. In the 49th minute, they were back level from a long throw by McKenzie.

The ball was cleared by Turkiye only as far as Berhalter, who did well to smash his shot low into the bottom corner.

The crowd erupted again just before the hour mark as Mauricio Pochettino sent on Christian Pulisic, undoubtedly the US’s biggest star, who will shoulder much of the cohosts’ hopes of a deep run into the knockouts.

Nicknamed “Captain America”, Pulisic earned his own round of “USA” chants, having not appeared since aggravating an injury in the first half of the opening win against Paraguay two weeks ago.

Pulisic immediately looked lively, twice having his effort blocked from close range after darting runs from the left. He knew less about a ball that looped off his shin onto the post.

Turkiye began to knock on the door again. A Yildiz effort curled inches wide in the 72nd minute.

And deep into stoppage time, Ayhan spoiled the US party, slamming the ball home from close range.

Turkiye were jubilant, while the American players clustered in a circle after the final whistle, seemingly determined not to let the gut punch spoil a campaign that had been off to a flying start.

Turkey's defender #22 Kaan Ayhan (2nd R) scores his team's third goal during the 2026 World Cup Group D football match between Turkey and USA at the Los Angeles Stadium in Inglewood on June 25, 2026. (Photo by Etienne LAURENT / AFP)
Turkiye defender Kaan Ayhan scores his team’s winning goal in the dying moments of the match [Aljazeera]

[Aljazeera]

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UNICEF Delegation Meets Prime Minister

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A delegation from UNICEF, accompanied by the United Nations Special Representative of the Secretary-General on Violence Against Children (VAC), Dr. Najat Maalla M’jid, met with Prime Minister Dr. Harini Amarasuriya on Thursday [25 June] at the Parliament premises.

The discussion was focused on further strengthening cooperation and engagement with the Government of Sri Lanka on ensuring the protection and well-being of children, and efforts to prevent and respond to all forms of violence against children.

During the meeting, the Prime Minister acknowledged UNICEF’s continued support to Sri Lanka, particularly during the response to Cyclone Ditwah, as well as its longstanding contributions to reforms in education and early childhood education and initiatives aimed at preventing and addressing violence against children.

The Prime Minister noted that while Sri Lanka has made significant progress in developing policies, the challenge lies in ensuring their effective implementation. She emphasized the need to address gaps in institutional capacity and human resources, while strengthening coordination among the various parts responsible for child protection while highlighting the critical role of frontline workers in the delivery of child protection services.

During the discussion, representatives of UNICEF emphasized the importance of bringing together all relevant stakeholders to address gaps in child protection procedures and referral pathways. Particular attention was given to ensuring that children have clear and accessible mechanisms through which they can report abuse and seek assistance.

Dr. Najat Maalla M’jid highlighted the importance of strengthening the competencies of frontline professionals on psycho social support, early detection, defining direct signs, techniques of effective listening, and safeguarding privacy. The discussions also underscored the growing importance of protecting children from online violence and abuse, and the need to strengthen measures to ensure children’s safety in digital environments.

The meeting was attended by Dr. Najat Maalla M’jid, United Nations Special Representative of the Secretary-General on Violence Against Children; Ms. Emma Brigham, UNICEF Representative; Mr. Marc-André Franche, United Nations Resident Coordinator; officials from the Ministry of Foreign Affairs; and additional secretaries and officials from the Ministry of Education.

[Prime Minister’s Media Division]

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