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

The Ministry of Justice and National Integration officially launched its new Management Information System (MIS) and revamped website, marking a significant milestone in ongoing efforts to modernize Sri Lanka’s justice sector and strengthen institutional efficiency, transparency, and accountability.

The MIS was developed as an initiative of the Support to Justice Sector Project (JURE), funded by the European Union, in partnership with the Ministry of Justice, and implemented by UNDP and UNICEF Sri Lanka. This complements the upgrading of the Ministry’s official website also supported by the JURE initiative, as part of its broader support to enhance digital transformation within the justice sector.

The newly introduced system is designed to streamline and professionalize the appointment of key justice sector roles, including Commissioners of Oaths, Inquirers into Sudden Deaths, Justices of the Peace, Unofficial Magistrates, and Sworn Translators. By introducing structured processes and improved selection criteria, the MIS enhances the transparency and integrity of appointments, while reducing administrative delays and inconsistencies.

The system also strengthens data management within the Ministry of Justice, enabling more efficient record-keeping, improved information sharing, and better coordination across institutions. This data-driven approach supports informed decision-making and contributes to more responsive and effective service delivery.

The revamped website introduces a comprehensive Citizen Services Information Portal, designed to provide the public with clear, accessible, and user-friendly information on a range of essential justice services. Through this portal, users can easily navigate resources related to legal aid, mediation, arbitration, debt conciliation, as well as victim and witness protection services, ensuring greater awareness and access to support mechanisms.

In addition, the website features a dedicated page highlighting the flagship JURE communications campaign, “Know Your Neethi” legal education video series, an important and commendable initiative aimed at enhancing public legal literacy. By simplifying complex legal concepts and making them widely available, this series empowers citizens with the knowledge needed to better understand their rights and responsibilities under the law.

Speaking at the launch, representatives from the Ministry of Justice, the European Union, and UNDP emphasized the importance of digital transformation in strengthening governance and improving access to justice. They noted that the MIS and updated website represent a critical step toward building a more transparent, accountable, and people-centered justice system in Sri Lanka.

The CSE kicked off on a positive note yesterday enabling the All Share Price Index to move upwards but the persistence of global uncertainty had a dampening effect, with the result that both indices gave out mixed reactions.The All Share Price Index went down by 51.24 points, while the S and P SL20 declined by 15.62 points.

Turnover stood at Rs 1.77 billion with eight crossings. The top seven crossings were: Tokyo Cement 1 million shares crossed to the tune of Rs 89.9 million; its shares traded at Rs 88.90, Lanka IOC Rs 500,000 shares crossed to the tune of Rs 70.5 million; its shares traded at Rs141, JKH 2.4 million shares crossed for Rs 43.5 million; its shares sold at Rs 18 20.

Hemas Holdings 1.5 million shares crossed to the tune of Rs 43.5 million; its shares traded at Rs 29, ACL Cables 500,000 shares crossed for Rs 42.75 million; its shares traded at Rs 85.50, Singer Sri Lanka 500,000 shares crossed for Rs 39 million; its shares traded at Rs 78 and Amana Takaful 1.5 million shares crossed for Rs 29.3 million; its shares sold at Rs 19.50.

In the retail market top seven companies that mainly contributed to the turnover were; Tokyo Cement Rs 115.7 million (1.3 million shares traded), JKH Rs 88 million (4.8 million shares traded ), Commercial Bank Rs 75.5 million (374,000 shares traded), ACL Cables Rs 57.7 million (672391 shares traded), Sampath Bank Rs 53.4 million (364,846 shares traded), Colombo Dockyard Rs 47.8 million (384580 shares traded) and Hayleys Rs 43 million (202,700 shares traded). During the day 64 million share volumes changed hands in 21085 transactions.

It is said that the manufacturing sector, especially JKH and Tokyo Cement, performed well, while the banking sector counters performed well.

Yesterday the rupee was quoted at Rs 315.20/60 to the US dollar in the spot market, improving from Rs 315.60/80 Tuesday, dealers said, while bond yields were broadly steady.

The telegraphic transfer rates for the American dollar were 311.9000 buying, 318.9000 selling; the British pound was 412.4755 buying, and 423.7789 selling, and the euro was 358.0270 buying, 369.4464 selling.

By Hiran H Senewiratne