Sri Lanka’s ongoing economic recovery program is showing positive results, according to an International Monetary Fund (IMF) spokesperson. The IMF’s next program review and discussions will take place after the formation of a new government following upcoming elections, spokesperson Julie Kozack stated.
Kozack noted key economic improvements, including a revival in growth, declining inflation, better revenue mobilization, and increasing international reserves. “From the IMF’s position, what we see is a program that has made significant achievements, but it is important to safeguard these gains to ensure the country fully emerges from one of its worst crises,” Kozack told reporters in Washington.
The IMF will resume discussions and review the program’s progress once a new government is established after the presidential elections. “We will be ready to move forward with program discussions after the elections based on the outcome chosen by the people,” Kozack added.
Regarding Sri Lanka’s debt restructuring efforts, Kozack confirmed that the IMF has provided an assessment of the latest bond restructuring framework to both the government and bondholders, although no specific details were shared about the framework’s alignment with the IMF’s debt sustainability assessment.
Kozack emphasized that the IMF does not participate directly in debt restructuring negotiations, which remain between the member country and its creditors. However, the IMF plays a crucial role in assessing overall debt sustainability during these discussions.