IMF Board to Decide Sri Lanka’s $347M Lifeline In Coming Weeks | 2026 Budget Under Review

COLOMBO (News 1st); The International Monetary Fund (IMF) says its Executive Board is expected to meet in the coming weeks to finalize the fifth review of Sri Lanka’s Extended Fund Facility (EFF) arrangement—a decision that will unlock USD 347 million in financing.

Speaking at a press briefing, Julie Kozack, IMF Director of Communications, affirmed that a staff-level agreement was reached on October 9 between IMF staff and Sri Lankan authorities.

“Once the review is approved by the IMF Executive Board, Sri Lanka will have access to USD 347 million in financing. We expect the Board meeting to take place in the coming weeks,” Kozack said in resonse to a question posed by News 1st's Zulfick Farzan.

On Sri Lanka’s recently announced budget—which sets an ambitious 7% growth target for 2026, well above IMF projections—Kozack noted that the Fund is currently reviewing the published budget documents to determine whether they align with program parameters.

“This assessment will be an important part of the review that will be discussed by the Board in the coming weeks,” she added.

Kozack stressed that structural reforms remain critical to lifting Sri Lanka’s potential growth, outlining key priorities:

Trade liberalization and related reforms

Improving and streamlining regulations around Foreign Direct Investment (FDI)

Accelerating governance reforms

Strengthening social safety nets and deepening welfare benefit schemes

“Continuing to protect the vulnerable should remain a priority going forward,” Kozack emphasized.