The IMF is collaborating with Sri Lanka to complete the fourth review of its USD 2.9 bln loan program. The IMF praised Sri Lanka’s reform agenda, highlighting a 5% GDP growth, a 2.6% drop in consumer prices in March 2025, and an increase in official reserves to USD 6.5 bln. However, it warned that external shocks and global uncertainty could slow recovery, urging continued reforms, improved tax compliance, and better-targeted social spending.