IMF Says Sri Lanka Economy Resilient but Risks Skewed to Downside

The International Monetary Fund said on Sept. 23 that Sri Lanka's economy continues to show resilience amid successive shocks but faces risks tilted to the downside, following a staff visit to the South Asian island nation. The country, supported by a $2.9 billion IMF program, is recovering from a 2022 economic crisis triggered by severe dollar shortages. The Fund approved a $700 million double tranche in May and forecasts 3% growth this year. The IMF urged Sri Lanka to maintain its 5% inflation target, uphold energy cost recovery and execute capital investment. It said sustained structural reforms are critical to safeguard macroeconomic stability and lift living standards.