IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the Fourth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility. 

Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$344 million in financing.

A statement issued by IMF Mission Chief for Sri Lanka Evan Papageorgiou states that program performance remains strong overall. Economic growth is rebounding. Revenue mobilization, reserve accumulation, and structural reforms are advancing as envisaged. Debt restructuring is nearly complete. 

Importantly, the government remains committed to program objectives, the statement adds.

It also notes that global trade policy uncertainty poses significant downside risks to Sri Lanka’s economy and if these materialize, authorities and staff will work together to assess the impact and formulate policy responses within the contours of the IMF-supported program.

The statement issued by IMF Mission Chief for Sri Lanka Evan Papageorgiou :

“IMF staff and the Sri Lankan authorities have reached a staff-level agreement on the Fourth Review of Sri Lanka’s reform program supported by the IMF’s 48-month Extended Fund Facility (EFF) arrangement. The EFF was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.

“The staff-level agreement is subject to IMF Executive Board approval, contingent on: (i) the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism; and (ii) the completion of financing assurances review, which will focus on confirming multilateral partners’ committed financing contributions and adequate debt restructuring progress.

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR254 million (about US$344 million), bringing the total IMF financial support disbursed under the arrangement to SDR1,270 million (about US$1,722 million).

“Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is remarkable. Revenue mobilization reforms had improved revenue-to-GDP ratio to 13.5 percent in 2024, from 8.2 percent in 2022. Gross official reserves reached US$6.5 billion at end-March 2025 given sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances. Sri Lanka’s debt restructuring is nearly complete.

“Program performance remains strong overall. Based on preliminary data, most end-March quantitative targets for which data is available were met. Most structural benchmarks due by end-April were either met or implemented with delay. However, the continuous structural benchmark on cost-recovery electricity pricing remains not met. Inflation remains below the Monetary Policy Consultation target band.

“The recent external shock and evolving developments create significant uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis.

“Against this global uncertainty, sustained revenue mobilization efforts and prudent budget execution remain critical to preserve the limited fiscal space, to allow appropriate responses if shocks materialize. Restoring cost-recovery electricity pricing is essential to minimize fiscal risks and enable appropriate electricity infrastructure investments. The tax exemption framework should be well designed to reduce fiscal costs and corruption risks, while enabling growth. Reforms to boost tax compliance are important to deliver revenue gains without resorting to additional tax measures.

“Similarly, it remains critical to continue rebuilding external buffers through reserves accumulation, to allow appropriate responses if shocks materialize. Inflationary pressures remain contained and banks are well capitalized. However, continued monitoring is warranted to ensure sustained price and financial stability.

“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to continue efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.

“The new government’s sustained commitment to program objectives has enhanced confidence and ensures policy continuity. Going forward, sustaining reform momentum including by reducing corruption vulnerabilities, is critical to safeguard the hard-won gains, durably restore macroeconomic and debt sustainability, and unlock robust and inclusive growth.

“The IMF team held meetings in Washington DC with the Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, and other senior officials.

“We would like to thank the authorities for the excellent discussions and strong collaboration.”

The Acting IGP has been informed to nominate a police investigation team to assist the investigation of the Committee of Inquiry to inquire and report its findings on IGP T.M.W. Deshabandu Tennakoon in respect of acts of gross abuse of power.

The Committee of Inquiry to inquire and report its findings on IGP T.M.W. Deshabandu Tennakoon in respect of acts of gross abuse of power has informed the Acting IGP in a letter to nominate a police investigation team to assist the investigation of the Committee. 

This was informed when the Committee met for the second time in Parliament today (April 25).

The Attorney General has nominated Additional Solicitor General (President’s Counsel) Dileepa Peiris and Deputy Solicitor General Rajitha Perera to assist the Committee. 

During today’s (April 25) session, the committee held preliminary discussions regarding the conduct of future proceedings and the involvement of relevant stakeholders.
Accordingly, it was decided that the committee would meet again on April 28, 2025 to take decisions regarding future proceedings.

Radiation treatments at the cancer unit of the Galle National Hospital in Karapitiya are facing a standstill after the Linear Accelerator device at the unit has been out of order since April 23.

According to the Government Radiological Technologists Association (GRTA) President – Chanaka Dharmawickrama, the malfunction is due to a malfunctioning of the Chiller established at the unit.  Linear accelerators and chillers are often used together in medical settings, particularly for radiation therapy. Chillers help maintain the optimal temperature for the linear accelerator, which is crucial for its operation and the accuracy of treatments. The cost of such a Chiller is nearly Rs.800 million, reports say.

Due to this being the only Linear Accelerator device in the Southern Province, a large number of patients are seriously affected.

There are 10 Linear Accelerator devices in hospitals in Sri Lanka. There are 05 in Apeksha Hospital, 02 at Kandy Hospital, and one each at the Galle Hospital, Jaffna Hospital and Batticaloa Hospital.

The GRTA points out that 04 out of these 10 Linear Accelerators are currently out of order with the main reason being the improper maintenance of temperature and humidity conditions in the units the devices are housed in.

The GRTA warns that frequent breakdowns caused by poor maintenance of environmental controls, have shortened the machines’ lifespan and led to repeated treatment disruptions.
The association warns that continued neglect of repairs will jeopardize both the machines’ longevity and the ability to provide uninterrupted treatment for patients.

Ongoing machine failures are causing further delays, forcing cancer patients to wait several months for radiation treatment.

Private sector treatment for cancer patients could cost between Rs.500,000 and Rs.1.7 million, an amount beyond the reach of most Sri Lankans.