In a detailed statement, the Ministry emphasised the critical need to adhere to the IMF’s established debt framework.The IMF mandates that countries seeking financial aid must demonstrate sustainable debt levels. If Sri Lanka’s debt is deemed unsustainable, the IMF will not be able to proceed with the bailout.

This underscores the importance of aligning the country’s debt restructuring efforts with the IMF’s guidelines to secure the necessary relief and meet debt targets.

Sri Lanka has made notable progress under the current IMF programme, but the road to recovery is still precarious. According to IMF Senior Mission Chief Peter Breuer, continuing with reforms aimed at fostering stable and inclusive economic growth is essential to avoid a return to crisis.

A key challenge remains achieving the primary fiscal balance—excluding interest payments—required to restore debt sustainability. From 2025 onwards, this balance must reach at least 2-3 per cent of GDP, based on realistic budget assumptions, he added