IMF Extended Fund Facility – 5th Review Underway

04-Oct-2025

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Julie Kozack, IMF Director of Communications, stated that an IMF team currently in Sri Lanka is conducting the fifth review of the Extended Fund Facility (EFF) program.

Responding at the IMF’s monthly press briefing in Washington to questions about the timeline for the Sri Lanka review and about IMF expectations as Sri Lanka prepares its 2026 revenue and expenditure estimates, Julie Kozack said, "The fourth review of the EFF with Sri Lanka was concluded by the IMF Executive Board on July 1 of this year. Through that, $350 million in financing was made available to Sri Lanka to support economic policies and reforms. As a result, the total IMF financing committed to Sri Lanka has risen to $1.74 billion."

She added that Sri Lanka’s strong reform efforts are continuing to record positive progress. Inflation has declined and is stabilizing at that level. There has been improvement in government revenue collection. 

Foreign reserves have been strengthening. Moreover, after a severe crisis, the economy registered a 5% growth last year — a notable achievement. The ratio of revenue to GDP, which was 8.2% in 2022, rose to 13.5% in 2024. The debt restructuring process is on track to be completed.

Implementation and achievements under the EFF are strong, and the government is committed to meeting the program targets.

She said an IMF team now in Sri Lanka is conducting the fifth review of the EFF. Team members are holding discussions with government authorities, and once the review is complete the team will brief the media on the findings.