Sri Lankan officials noted that economic prospects are closely tied to the continuation of its IMF loan program and progress in structural reforms. After a period of hyperinflation peaking at 70% last year, inflation rose again to 6.4% last month. The central bank remains optimistic about meeting its 5% inflation target, expecting inflation to peak in the July-September quarter and stabilize in the medium term. Notably, the economy expanded for the first time in nearly two years in Q3 2023.