IMF's Gopinath praises Lanka's economic reforms, urges sustained momentum

International Monetary Fund (IMF) First Deputy Managing Director Gita Gopinath on Monday commended Sri Lanka's significant progress in economic reforms and emphasised the importance of maintaining momentum to ensure lasting stability and prosperity in the island nation.

Gopinath is on a two-day official visit to Sri Lanka from June 15.

During her meeting with President Anura Kumara Dissanayake at the Presidential Secretariat, Gopinath acknowledged the strong mandate received by the ruling National People's Power (NPP) in both parliamentary and local council elections, according to a press release issued by the president's office.

She noted that these mandates "enhance the government's ability to implement much-needed reforms, it said.

Dissanayake's party won record record-breaking two-thirds parliamentary majority in November last year. In the local council election held in early May, it gained a majority of the 338 seats. 

Gopinath commended the remarkable progress achieved over the past two years from a state of severe crisis to renewed growth and falling inflation, the release said  In a post on social media platform X, Gopinath said she and President Dissanayake discussed Sri Lanka's "strong performance on economic reforms and the importance of maintaining momentum".

"Continued commitment to these reforms is vital for lasting stability and prosperity for all Sri Lankans," she said.

Sri Lanka secured a USD 2.9 billion bailout from the IMF in March 2023 to address its worst financial crisis since independence. The country has since made notable progress, including restoring macroeconomic stability and reducing inflation.

The IMF has reaffirmed its strong support for Sri Lanka's economic recovery and reform agenda.