Evan Papageorgiou discusses the progress and structural pillars of Sri Lanka’s IMF-supported economic recovery programme. Evan outlines the current four-year Extended Fund Facility (EFF), which commenced on 20 March 2023 and is scheduled to conclude on 19 March 2027. The programme is built upon five core pillars: Revenue-driven fiscal consolidation to restore sustainability. Debt sustainability through international sovereign bond restructuring and bilateral agreements. Price and monetary stability, alongside rebuilding external buffers. Safeguarding financial sector stability to prevent non-performing loan increases. Governance improvements to tackle corruption. Evan reports that real GDP grew by 4.8 per cent year-on-year in the first half of 2025, noting that while growth is strong, much of it appears cyclical due to pent-up demand in motor vehicle imports rather than purely structural shifts. Murtaza raised concerns regarding tax fairness and exemptions for entities like Port City.
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