Economy

US$ 2bn World Bank-backed plan to power Sri Lanka’s next growth phase

Published

2 months ago

April 6, 2026

The World Bank Group and the Government of Sri Lanka launched a new five-year Country Partnership Framework (CPF) to support Sri Lanka’s continued recovery, help achieve its 7 percent medium-term economic growth target, and support job creation.

“We are committed to building on the continued macroeconomic stability, strengthened governance and revenue-based fiscal consolidation that we have already achieved. Our goal is to confidently steer our economy towards strong, sustainable and inclusive growth. We are working towards an economic growth rate of over 7 percent in the medium term,” said President Anura Kumara Dissanayake.

Private sector-led job creation is at the heart of the new partnership. Nearly one million young Sri Lankans are expected to enter the job market over the next decade. Without stronger growth and greater private investment, the economy will create only around 300,000 new formal jobs — leaving roughly 7 out of every 10 young job seekers without access to a quality job.

“Sri Lanka’s recovery over the past three years has been hard-won and impressive. This new partnership framework is designed to ensure that the benefits reach everyone,” said Johannes Zutt, World Bank Vice President for South Asia.”

By pairing public resources with private capital and innovation, we aim to help Sri Lanka create quality jobs, including for women, young people, and communities that have been left behind.”

Economy

Sri Lanka Secures US$695 Million IMF Tranche

Published

3 days ago

May 28, 2026

admin

Sri Lanka has secured another US$695 million from the IMF after the completion of the fifth and sixth reviews of the country’s reform programme.

The IMF says Sri Lanka’s reform performance remains “generally strong” despite global challenges, but warned that the Middle East conflict and Cyclone Ditwah pose risks to economic recovery.

Economy

IMF Says Sri Lanka’s Policy Framework StrongerThan In The Past

Published

4 days ago

May 27, 2026

admin

IMF mission chief Evan Papageorgiou painted a firmer, more confident picture of Sri Lanka’s economic policy framework as the Fund’s Executive Board prepares to consider the combined Fifth and Sixth Reviews of the country’s Extended Fund Facility (EFF) on Wednesday, 27 May.

“Sri Lanka’s reform program continues to move forward,” Papageorgiou said, stressing that “Sri Lanka’s policy framework today is considerably stronger than in the past.”

The IMF view, voiced at a critical moment for the island’s finances , frames the coming Board decision as a test of whether progress on macro stability, reserve rebuilding and investor confidence will translate into continued financial support.

The Executive Board’s decision could unlock the sixth and seventh tranches of the EFF, together worth about USD 700 million.

IMF mission chief Evan Papageorgiou said that the authorities’ recent progress in restoring macroeconomic stability and rebuilding reserves has been recognised by the public, investors and stakeholders.

Global shocks continue to pose renewed pressures, but the Fund emphasised that a stronger policy stance means Sri Lanka is better placed to navigate them.

Economy

Sri Lanka’s exports surpass US$ 5.7b in first four months of 2026

Published

5 days ago

May 25, 2026

admin

Sri Lanka’s total exports, comprising both merchandise and services, reached US$ 1,380.93 million in April 2026, recording a year-on-year growth of 6 % compared to April 2025.

According to provisional data released by Sri Lanka Customs, together with estimated figures for Gems & Jewellery and Petroleum Products, merchandise exports in April 2026 increased by 9.87% to US$ 1,063.77 million.

Earnings from services exports were estimated at US$ 317.16 million in April 2026, underscoring the growing importance of the services sector in driving Sri Lanka’s overall export performance.

On a cumulative basis, total exports for the period January to April 2026 are estimated at US$ 5,784.38 million, reflecting a growth of 4.3 % over the corresponding period in 2025.

Overall, the positive export performance recorded during the first four months of 2026 highlights the resilience of Sri Lanka’s external sector. Sustained export earnings, supported by stable merchandise trade and the growing contribution of services exports, indicate a steady and encouraging recovery trajectory for the Sri Lankan economy in 2026.