Sri Lanka’s economy has shown significant progress, with increasing income levels and poverty reduction, making it a more attractive place for citizens to stay rather than emigrate, according to International Monetary Fund (IMF) Senior Mission Chief for Sri Lanka, Peter Breuer.
Speaking at a press conference following the IMF Executive Board’s completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) program, Breuer praised the country’s rapid economic turnaround and improvement in foreign reserves.
“They have reached about half of the program objectives already, which is very impressive,” Breuer stated, highlighting the success of Sri Lanka’s economic reforms under the IMF program.
Recalling the economic turmoil of 2022, Breuer noted:
“When I first got to Sri Lanka in June 2022, everybody was on a line somewhere—to get fuel, cooking gas, food, or medication. Economic activity was very subdued, and Sri Lanka lost around 10% of its economic activity due to the crisis.”
However, under the IMF-backed recovery program, Sri Lanka has already regained 40% of the income lost over the past five years. The most recent economic growth rate of 5.5% indicates a strong and ongoing recovery, he added.
Looking ahead, Breuer emphasized that as economic opportunities expand, income levels will rise, poverty will decrease, and Sri Lanka will become a more attractive place for its citizens to stay. He also noted that those who emigrated may find new opportunities to return.
Sri Lanka’s IMF-backed $2.9 billion bailout program has been crucial in stabilizing its economy, improving investor confidence, and helping the nation navigate its way out of financial distress.
