Overview

• President Anura Kumara Dissanayake said Colombo will offer incentives and hold discussions with the IMF to attract foreign investment following a 5% growth in 2024.
• The government boosted power prices by 15% last week to secure board approval for a fifth tranche of about $334 million under the IMF program.
• Colombo is close to finalizing a $22.5 billion debt restructuring deal with IMF backing that has introduced improved methods for state-contingent debt payments.
• The IMF’s Gita Gopinath warned that further disbursements hinge on Sri Lanka sustaining governance reforms and avoiding policy errors.
• Officials say deeper reforms remain necessary to overhaul loss-making state enterprises, trim the public service and reduce poverty and domestic debt.