Business
IMF reviews progress as Sri Lanka stresses economic resilience amid external pressures
Sri Lanka has made steady progress under the International Monetary Fund Extended Fund Facility (EFF) programme, with the fifth and sixth reviews now under close assessment, informed officials said following high-level discussions held at the Presidential Secretariat yesterday.
A visiting delegation led by IMF Mission Chief for Sri Lanka Evan Papageorgiou met President Anura Kumara Dissanayake and senior government leaders to evaluate the country’s performance against key reform benchmarks, including fiscal consolidation, revenue mobilisation and external sector stability.
“Informed officials indicated that Sri Lanka has demonstrated notable resilience despite a challenging global environment,” sources familiar with the discussions told The Island Financial Review. “There has been measurable progress in stabilising macroeconomic conditions, particularly in terms of rebuilding foreign reserves and strengthening public finance management.”
The talks focused extensively on maintaining the current reform momentum, with both sides acknowledging that policy consistency would be critical to sustaining recent gains.
“Officials emphasised that the economy is now in a more shock-resilient position compared to the height of the crisis,” a senior source said. “However, they also cautioned that this stability remains fragile and requires continued fiscal discipline and structural reforms.”
Particular attention was paid to Sri Lanka’s revenue performance, which has been a cornerstone of the IMF-supported programme.
“The improvement in revenue collection has been a key positive,” an official noted. “It reflects both policy measures and better administration, but sustaining this trajectory will be essential to meeting programme targets.”
The discussions also addressed the buildup of foreign reserves, a critical buffer against external vulnerabilities.
“Rebuilding reserves has strengthened confidence,” another official said. “It provides a degree of insulation against global shocks, although the country is not yet fully out of risk territory.”
Officials acknowledged that emerging geopolitical tensions—particularly the ongoing instability in the Middle East—pose a fresh external challenge.
“The impact from the Middle East situation is unavoidable,” a source said. “Higher energy prices and supply uncertainties are already exerting pressure, and these factors could affect inflation and the balance of payments.”
In response, the government has prioritised targeted relief measures to cushion vulnerable groups from rising costs, particularly in relation to fuel and energy.
“There is a clear focus on ensuring that any shocks are managed without derailing the broader reform programme,” an official explained. “Targeted support, rather than broad subsidies, remains the preferred approach.”
Energy security and pricing were also
key areas of discussion, given their direct impact on both fiscal stability and household welfare.
“Maintaining cost-reflective pricing while protecting the most vulnerable is a delicate balance,” a senior official said. “But it is essential for the sustainability of the sector.”
The IMF team is expected to continue its assessment in the coming days, with outcomes of the fifth and sixth reviews likely to play a crucial role in determining the next phase of disbursements under the programme.
“Informed officials stressed that successful completion of these reviews would send a strong signal to international markets and development partners,” sources said.
They added that Sri Lanka’s reform trajectory has already contributed to improved investor sentiment, although sustained confidence will depend on consistent policy implementation.
“The message from both sides is clear—stay the course,” an official said. “The foundations for recovery are being laid, but the process is far from complete.”
By Ifham Nizam
To catalyze bilateral trade and investment and drive regional economic integration, the Consulate General of Sri Lanka in Mumbai facilitated a series of high-level strategic engagements between The Ceylon Chamber of Commerce and leading Indian commercial institutions on May 13 and 14.
The delegation from The Ceylon Chamber of Commerce was led by its Chairman Krishan Balendra, CEO of John Keells Holdings Pvt Ltd and comprised a distinguished group of Sri Lankan industry leaders from Hirdaramani Group, Maliban Biscuit Manufactories (Pvt) Ltd, Sierra Cables PLC, A. Baur & Co. (Pvt) Ltd, Jetwing Travels (Pvt) Ltd, Ceylon Biscuits Ltd, Hayleys PLC, Vidullanka PLC, MAS India Clothing (Pvt) Ltd, Tudawe Brothers (Pvt) Ltd, David Pieris Holdings (Pvt) Ltd, Bank of Ceylon, Aitken Spence PLC, LTL Holdings Ltd. and Orel IT Pvt. Ltd.
On May 13, The Confederation of Indian Industry (CII) and The Ceylon Chamber of Commerce jointly hosted the ‘India–Sri Lanka Business Forum: Partnering in Sri Lanka’s Growth and Investment’ and an exclusive CEO interaction in Mumbai. The forum convened senior government officials, policymakers, and industry leaders from both countries.
These included, among others, High Commissioner of Sri Lanka to India Mahishini Colonne; Consul General of Sri Lanka in Mumbai Priyanga Wickramasinghe; Senior Economic Advisor to the President of Sri Lanka Duminda Hulangamuwa; Secretary (Protocol, FDI, Diaspora & Outreach) and Chief of Protocol Government of Maharashtra Rajesh Ravindra Gawande; Co-chairman, CII Western Region Sub-committee on International Trade & Investment and Chief Executive Officer, Polycab India Ltd. Anurag Agarwal; Chairman, CII Western Region Sub-Committee on Tourism and Hospitality and Executive Director, Kamat Hotels India Ltd Vishal Kamat and Secretary General & CEO of The Ceylon Chamber of Commerce Shiran Fernando.
Conversations centered on accelerating cross-border cooperation across high-priority sectors, including technology, manufacturing, healthcare, renewable energy, and digital transformation.
On May 14, the delegation engaged in productive Business-to-Business sessions with the IMC Chamber of Commerce and Industry, culminating in the formal renewal of the Memorandum of Understanding between The Ceylon Chamber of Commerce and IMC. The delegation also participated in an interactive session hosted by the World Trade Center (WTC) Mumbai and the All India Association of Industries (AIAI).
The two-day mission concluded with a robust exchange of views cementing a strong foundation for sustained bilateral collaboration and paving the way for a new era of industrial synergy between Colombo and Mumbai. (Consulate General of SL, Mumbai)
Demonstrating its commitment to supporting the nation’s next phase of economic transformation, Commercial Bank of Ceylon has become one of the first banks in Sri Lanka to enter into an agreement to establish a fully-fledged branch at Port City Colombo, marking a significant step in the Bank’s strategic expansion into the country’s emerging international financial hub.
The agreement was signed by Sanath Manatunge, Managing Director/CEO of Commercial Bank, and Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. The partnership further reinforces Commercial Bank’s position at the forefront of Sri Lanka’s evolving financial landscape.
The proposed branch will function as a fully-fledged banking branch, offering a full spectrum of products and services tailored to the needs of corporates, investors, businesses and retail customers operating within the Port City Colombo ecosystem. These will include digital banking facilities, trade services, foreign currency transactions, corporate banking solutions, deposits, lending, card services and remittance facilities.
By establishing a presence within Port City Colombo, the Bank said it aims to further strengthen its ability to support cross-border business and investment flows while positioning itself to meet the sophisticated requirements of global investors, multinational corporates and high-net-worth individuals expected to operate within the Special Economic Zone.
Commenting on this ground breaking initiative, Sanath Manatunge, Managing Director/CEO of Commercial Bank said the Bank’s decision to establish a fully-fledged branch within Port City Colombo reflects both its long-term confidence in the project and its readiness to support the evolving needs of a globally integrated financial ecosystem.
“As Sri Lanka’s largest private sector bank with a strong track record in serving corporates, international clients and high-value businesses, we see Port City Colombo as a pivotal development in the country’s economic future,” he said. “Our presence within this Special Economic Zone will enable us to seamlessly support cross-border transactions, facilitate international trade and investment, and deliver world-class banking solutions backed by advanced digital capabilities. Being one of the first banks to formalise plans for a full-service branch within Port City Colombo reaffirms our role as a pioneer in driving financial innovation and supporting national development.”
A 269-hectare extension of Sri Lanka’s central business district, Port City Colombo is being developed as a multi-service Special Economic Zone designed to serve as a regional financial centre, business and lifestyle hub. One of the largest public-private partnership projects in the country, it is envisioned as a catalyst for high-value investments, underpinned by advanced infrastructure, cutting-edge technology and a progressive regulatory framework.
“Our role as master developer goes beyond building the city itself. It is about creating the foundations for a functioning international business and financial hub,” said Mr Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. “The establishment of institutions such as Commercial Bank within Port City Colombo is an important part of that process, because it brings real operational depth and credibility into the ecosystem from an early stage. It reflects the broader momentum behind the project and the growing shift towards a more globally connected, investment-driven economy in Sri Lanka.”
Sri Lanka’s renowned specialty tea brand “Singharaja Wiry Tips,” produced by Lumbini Tea Valley Ceylon, has won two major accolades at the prestigious “The Leafies International Tea Awards” held recently at Fortnum and Mason in the United Kingdom.
The award-winning low-grown Ceylon tea secured the titles of “Best Ceylon Black Tea” and the overall “Best of All Black Teas,” emerging as the top black tea entered at the international competition.
With these latest honours, “Singharaja Wiry Tips” has now earned its 43rd and 44th international awards, further strengthening its reputation as one of the world’s most highly awarded black teas.
Classified as FBOPF EX SP (Flowery Broken Orange Pekoe Fannings Extra Special), the tea is named after its distinctive golden-tipped wiry leaves and unique flavour profile derived from the ecosystem surrounding the UNESCO World Heritage-listed Singharaja Rainforest, which borders the Lumbini plantation.
Lumbini Tea Valley’s latest innovation, “Lumbini Screw Buds,” also received high commendation at this year’s competition, highlighting the company’s continued excellence in producing premium Ceylon teas.
Chairman and Managing Director Chaminda Jayawardena, who accepted the awards in London, credited the achievement to the dedication of the Lumbini workforce and the support of nearly 1,800 tea farmers supplying high-quality green leaf harvested using the traditional “two leaves and a bud” method.
by SK Samaranayake
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