The International Monetary Fund (IMF) has warned Sri Lanka’s economy is still vulnerable and the path to debt sustainability remains knife-edged.
The IMF Directors said that, therefore, the country needs to sustain the reform momentum.
However, the IMF Directors further said there is sufficient progress for Sri Lanka’s Debt Restructuring process to move forward.
According to the IMF Directors, important vulnerabilities and uncertainties remain, including with respect to the ongoing debt restructuring and the upcoming elections.
Against this backdrop, they called on the authorities to continue strengthening macroeconomic policies to restore economic stability and debt sustainability and to sustain the reform momentum to promote long‑term inclusive growth.
Providing further details, the IMF Directors said performance under the program has been strong.
“All quantitative targets for end-December 2023 were met, except the indicative target on social spending. Most structural benchmarks due by the end of April 2024 were either met or implemented with delay,” they added.
Full IMF report : https://shorturl.at/cSmgr (Newswire)