Opposition Leader Sajith Premadasa Meets IMF Delegation to Discuss Sri Lanka’s Economic Outlook

The meeting focused on Sri Lanka’s current economic situation, the implementation of the IMF-supported programme, and the country’s economic outlook beyond the current Extended Fund Facility (EFF) arrangement.

The discussions covered Sri Lanka’s external position, foreign exchange reserves, debt sustainability, fiscal conditions and economic growth. Attention was also given to the country’s economic resilience beyond March 2027 and the conditions required to maintain economic stability after the current EFF programme.

Particular attention was paid to the measurable economic conditions Sri Lanka should achieve by the end of the current programme, including sustainable debt and fiscal positions, manageable external financing requirements and improved prospects for sustainable economic growth.

Opposition Leader Sajith Premadasa stressed that fiscal consolidation and economic adjustment should not place a disproportionate burden on working people and vulnerable families. He also called for greater attention to the economic difficulties faced by families and micro, small and medium-sized enterprises (MSMEs) while maintaining macroeconomic stability and fiscal discipline.

He further emphasised that the IMF-supported economic reform programme should ultimately be assessed not only through overall macroeconomic indicators, but also through its impact at the household, individual and business levels.

According to Premadasa, greater attention should be given to poverty, affordability, inflation and household incomes, particularly the economic pressures faced by low- and middle-income families.

He also stressed the need for Sri Lanka to move from economic stabilisation towards sustainable and inclusive economic growth, with increased investment, employment opportunities, higher household incomes and stronger economic security for the public.

The importance of developing a credible economic framework beyond March 2027 was also discussed, with the aim of maintaining macroeconomic stability while strengthening Sri Lanka’s ability to withstand future external shocks.

Among the key issues discussed were:

• The need to look beyond overall macroeconomic indicators and assess their impact on households, individuals and businesses, including poverty, affordability, household incomes and employment.

• Economic pressures faced by MSMEs, including debt difficulties and their wider implications for entrepreneurship and productive capacity.

• The importance of ensuring that fiscal consolidation and taxation do not place a disproportionate burden on working people and vulnerable households.

• The need for reliable and timely household-level and poverty data to support evidence-based policymaking and assess the distributional effects of economic adjustment.

Premadasa further stressed that macroeconomic stabilisation should translate into measurable improvements in people’s lives, including reductions in poverty, improved affordability, stronger household incomes and greater economic security for working people.

He also sought clarification on the economic conditions and quantitative indicators that would determine whether Sri Lanka could successfully transition beyond the current EFF arrangement without a successor financing programme, as well as the circumstances under which continued IMF financial support should be considered.

The meeting took place as the IMF continues its engagement with Sri Lanka under the EFF programme. According to the stated programme schedule, the seventh review is scheduled for October 2026, while the eighth review is scheduled for March 2027, based on performance through the end of December 2026.

The IMF delegation included Mr. Evan Papageorgiou (Mission Chief), Mr. Enrique Flores Curiel, Ms. Dinar Prihardini, Ms. Ursula Wiriadinata, Ms. Ozlem Aydin, Mr. Yorbol Yakhshilikov, Mr. Klakow Akepanidtaworn, Ms. Yan Chen, Ms. Martha Woldemichael (Resident Representative), and Ms. Manavee Abeywickrama.

Representatives of the Samagi Jana Balawegaya (SJB) who attended included Dr. Harsha de Silva, MP Harshana Rajakaruna, Kabir Hashim, Hector Appuhamy, Ajith P. Perera, Mujibur Rahman, Professor Prasanna Perera, Talal Rafi, Kusum Wijethilaka and Dilum Amunugama, among others.