The International Monetary Fund (IMF) Executive Board has completed the third review of Sri Lanka’s 48-month Extended Fund Facility (EFF) arrangement, approving an immediate disbursement of approximately $334 million (SDR 254 million).
This brings the total IMF financial support disbursed to Sri Lanka to about $1.34 billion (SDR 1.02 billion) under the $3 billion program.
The IMF commended Sri Lanka’s strong performance under the program, noting that all quantitative targets for end-December 2024 were met, except for the indicative target on social spending. Most structural benchmarks due by end-January 2025 were either met or implemented with delay.
The recent successful completion of the bond exchange was highlighted as a major milestone in restoring debt sustainability.
Key highlights from the IMF statement: – Economic Recovery: Sri Lanka’s economy has shown remarkable recovery, with growth averaging 4.3% since the third quarter of 2023. By end-2024, real GDP had recovered 40% of the losses incurred between 2018 and 2023. – Inflation and Reserves: Inflation remains low, revenue collection is improving, and foreign reserves continue to accumulate. – Reform Momentum: Sustaining the reform agenda is critical to ensure macroeconomic stability, debt sustainability, and long-term inclusive growth. The IMF emphasized that there is no room for policy errors. – Revenue Mobilization: Strengthening tax compliance and avoiding tax exemptions are essential for fiscal sustainability and continued provision of essential services. – Social Spending: Meeting social spending targets and reforming the social safety net are crucial to protect the poor and vulnerable. – Debt Restructuring: Progress in debt restructuring, including the successful bond exchange, is a significant step towards restoring debt sustainability. Finalizing agreements with bilateral creditors remains a priority. – Monetary Policy: Maintaining price stability, prohibiting monetary financing, and safeguarding Central Bank independence are key priorities. – Structural Reforms: Addressing non-performing loans, improving governance in state-owned banks, and enhancing insolvency frameworks are vital for reviving credit growth and supporting economic recovery.
IMF Deputy Managing Director Kenji Okamura had stated : “Reforms in Sri Lanka are bearing fruit, and the economic recovery has been remarkable. Sustaining the reform momentum is critical to ensure macroeconomic stability, debt sustainability, and promote long-term inclusive growth. There is no room for policy errors.”
The IMF’s continued support underscores the importance of Sri Lanka’s commitment to reforms as the country works towards lasting economic recovery and stability.
A Memorandum of Understanding (MoU) between the National Centre for Good Governance of India (NCGG) and Sri Lanka Institute of Development Administration (SLIDA) was signed during the State Visit of President of Sri Lanka, H.E. Anura Kumara Disanayaka to India in December 2024 for training and capacity building of 1500 Sri Lankan civil service officers over a period of five years.
The first program under the MoU was successfully held at NCGG from 21 April to 02 May 2025, and was attended by 41 officers. Based on the request of the Government of Sri Lanka, the theme of the program was ‘digitization in governance’. The program featured a series of sessions focused on key areas such as digital service delivery, digital public infrastructure, financial inclusion through digital payments, and innovations in public grievance redressal systems. Senior officials and domain experts delivered presentations on flagship Indian initiatives in the digital domain, including Ayushman Bharat Digital Mission, e-Office, GeM, Aadhaar, PM Gati Shakti, among others.
At an interaction session with participants in the inaugural program organized on 08 May 2025 at SLIDA, the High Commissioner of India to Sri Lanka, H.E. Santosh Jha underscored that capacity building is an important pillar of the development cooperation between the two countries, with Sri Lanka being among the largest recipients of scholarships and capacity building initiatives offered by India. He highlighted that, demonstrating India’s continued commitment to enhancing capacity-building opportunities for Sri Lankans, Prime Minister of India had announced additional training avenues to 700 Sri Lankan citizens annually during his recent State visit. In that context, the High Commissioner said that the participants in the first NCGG-SLIDA programme also represented the first set of Sri Lankan nationals to receive training as part of the significantly enhanced capacity-building endeavour of India that will now benefit 1000 Sri Lankans annually.
The interaction session was also attended by Secretary, Ministry of Public Administration, Provincial Councils and Local Government, Mr S. Aloka Bandara; Director General of SLIDA, Mr A.V. Janadara; senior officials and faculty members of SLIDA; among others.
In view of the highly positive feedback from the participants in the inaugural NCGG-SLIDA program, based on request from SLIDA, a second program on the same theme under the MoU is now being planned for another batch of around 40 officers for early June 2025.
Another Special Forces (SF) soldier who was onboard the SLAF Bell 212 helicopter that crashed into the Maduru Oya Reservoir this morning (May 09) has succumbed to his injuries while receiving treatment at the hospital.
This brings the death toll from the fatal accident to six.
Six other armed forces personnel, who sustained injuries in the incident, are currently receiving treatment at the hospital.
(Previous news 2025 May 09 – 11.31.a.m.)
5 dead in Bell 212 crash
Five military personnel have been confirmed dead in the crash of a Sri Lanka Air Force (SLAF) Bell 212 helicopter into the Maduru Oya Reservoir earlier this morning (May 09. According to the SLAF Spokesperson Group Captain Eranda Geeganage, the deceased include three members of the Sri Lanka Army’s Special Forces and two Air Force personnel.
The aircraft was carrying a total of 12 individuals, including six Army Special Forces members, two Air Force Regiment Special Forces personnel, two other Air Force members, and two pilots.
The Election Commission has instructed all candidates who contested the 2925 Local Government (LG) Elections to submit their campaign income and expenditure reports on or before May 28.
A statement by the Commission emphasized that candidates are required to prepare and submit their financial disclosures in line with the provisions of the Election Expenditure Regulation Act No. 03 of 2023. These reports must be handed over to the Returning Officers of the respective electoral districts.
Election Commissioner General Saman Sri Ratnayake stated that this process is part of the Commission’s efforts to ensure transparency and accountability in the electoral process.