The IMF has said Sri Lanka's external borrowings should be in line with economic sustainability.
"New external borrowings should also be done with a close eye to sustainability and the need to ensure that investments generate the resources needed to service these obligations", Todd Schneider, the IMF's mission leader told reporters here today at the end of the team's visit.
The mission was here for post-programme monitoring discussions after the completion of last year's 2.6 billion dollar IMF stand by facility to the island nation.
The IMF's observation comes in the backdrop of yesterday's government announcement that the state owned National Savings bank has sold 750 million dollar worth of bonds.
It also cautioned that tapering of US Federal Reserve stimulus could bring about external risks for Sri Lanka.
It advised that Central Bank of Sri Lanka should follow a flexible exchange rate regime with minimum intervention.
The IMF also recommended holding of the policy interest rates at current levels.
Earlier this week, the Sri Lankan Central Bank said the island was heading for a 7.5 per cent growth this year.