The International Monetary Fund (IMF) has warned that Sri Lanka’s economic recovery could be threatened by trade union strikes over cuts to government employee benefits in the 2025 budget.
Despite public sector salary increases, President Anura Kumara Dissanayake’s budget reduced longstanding perks. Doctors’ and teachers’ unions are considering strikes in protest.
IMF team leader Peter Breuer called the budget the “last big push” for economic reforms, urging continued commitment to ensure stability.
The IMF recently released a $334 million tranche of its $2.9 billion bailout, commending Sri Lanka’s progress. Deputy Managing Director Kenji Okamura said the recovery is on track but requires sustained efforts.
