IMF urges Sri Lanka to focus on monetary policy to tackle inflation rise

IMF said Sri Lanka needs to tighten its monetary policy to contain rising inflation, put its high debt repayments on track and reverse one of the worst financial crises the country has faced in years

The International Monetary Fund (IMF) said on Wednesday Sri Lanka needs to tighten its monetary policy to contain rising inflation, put its high debt repayments on track and reverse one of the worst financial crises the country has faced in years.
 

In a so-called Article IV review, the first since 2018, the IMF stressed the urgency of implementing a credible strategy to restore the country's macroeconomic stability and reduce debt. It suggested that Sri Lankan authorities should reform state-owned enterprises and adopt cost-recovery energy pricing.
 

Sri Lanka's reserves have plunged 70% since 2020, dwindling to $2.36 billion at the end