The International Monetary Fund (IMF) is reviewing Sri Lanka’s newly announced 2026 budget, particularly its 7 per cent growth target, to determine whether it aligns with the terms of the country’s ongoing bailout program.

At a briefing yesterday, IMF Communications Director Julie Kozack said the international body is examining the published documents, noting that the assessment will influence the next decision on Sri Lanka.

IMF reached a staff-level agreement with Colombo on 9 October for the Fifth Review of its Extended Fund Facility. Kozack said Sri Lanka will gain access to about US$347 million after board approval, with the Board meeting expected in the coming weeks.

She stressed that progress on structural reforms remains crucial to improving long-term growth, highlighting trade liberalisation, streamlined FDI regulations, stronger governance and procurement oversight, enhanced AML/CFT measures, and the expansion of social protection schemes.

The IMF’s evaluation of the budget and reform trajectory will directly shape deliberations on releasing the next tranche of bailout funding.