Sri Lanka has passed the second stage of review for the IMF’s assistance program, marking the beginning of its full-scale economic reconstruction.
In March 2024, the IMF completed the second stage of its Expanded Financial Assistance (EFF) program for Sri Lanka, approving the grant. This decision ensures the disbursement of the next tranche (loan installment payments). This international recognition demonstrates that Sri Lanka is making significant progress in its recovery from the economic crisis.
The evaluation focused on improvements in the fiscal balance, inflation control, and an increase in foreign exchange reserves. The Sri Lankan government has demonstrated a strong commitment to fiscal consolidation through subsidy cuts, increased tax revenues, and reforms to state-owned enterprises. Economic growth turned positive in the fourth quarter of 2023, and a strong recovery was projected for the full year of 2024.
The Port City Colombo Special Economic Zone operates under a legal framework independent of these economic reforms, and is demonstrating further competitiveness amidst the improving external environment. Our organization provides individual support to companies considering expanding into Port City.
Source: IMF “Sri Lanka EFF Program Second Stage Evaluation Report” (March 2024)
- In 2023, the value of agricultural, forestry, and fishery product exports reached 1,454.1 billion yen, marking a new record high for the 12th consecutive year.
- An export support platform has been established in Malaysia. The export promotion system, including halal certification, has been strengthened.