March 26 IMF Visit to Focus on Combined Reviews and Middle East Fallout

COLOMBO (News 1st); An International Monetary Fund (IMF) team will visit Sri Lanka from March 26 through April 9 to hold discussions on economic policies, with the aim of completing a combined fifth and sixth review under Sri Lanka’s IMF-supported programme, IMF Director of Communications Julie Kozack said.

Addressing the IMF’s assessment of Sri Lanka, Kozack said the upcoming mission will engage closely with Sri Lankan authorities, including to better understand the potential impact of the conflict in the Middle East on the country’s economy. She noted that once the team returns, it will provide an updated assessment of Sri Lanka’s economic conditions and examine how the IMF can continue to best support the country.

Kozack said the IMF Managing Director, who recently visited Sri Lanka, had observed that the country’s reform programme has made very significant progress. She added that even after being hit by the devastating Cyclone Ditwa, the Managing Director was inspired by the resilience of the Sri Lankan people and their ability to face what she described as a momentous challenge.

On economic performance, Kozack said Sri Lanka’s economy has been growing relatively strongly, recording 5% growth in 2025. She noted that inflation stood at about 1.6% in February, while debt restructuring is nearly complete and gross international reserves have been increasing significantly.

However, she cautioned that Sri Lanka remains significantly exposed to the conflict in the Middle East, particularly through trade, remittances, and tourism channels, which could weigh on the country’s economic outlook.

Kozack said the forthcoming IMF discussions will therefore also focus on assessing these external risks, as the Fund works with Sri Lankan authorities to determine the next steps under the programme and ensure continued economic stability.