The International Monetary Fund (IMF) has highlighted that Sri Lanka’s economic recovery is gaining momentum, though challenges remain, emphasizing the importance of sustaining reform efforts to achieve lasting macroeconomic stability and debt sustainability.

During the IMF’s weekly press briefing, spokesperson Julie Kozack confirmed that the IMF had released a fourth tranche of $334 million to Sri Lanka, following the approval of the Third Review under the Extended Fund Facility (EFF) arrangement on February 28. This brings the total financial support from the IMF to $1.34 billion.

Kozack noted positive developments, including low inflation, improved fiscal revenue, and growing international reserves. Economic growth reached 5% in 2024 after two years of contraction, with the IMF expecting the recovery to continue into 2025.

However, she cautioned that Sri Lanka’s economy remains vulnerable and stressed the need for ongoing reforms to ensure long-term stability. In response to a journalist’s query about the proposal to list State-Owned Enterprises (SOEs) on the Colombo Stock Exchange, Kozack declined to comment, promising a follow-up response.