No final decision on leaving the IMF programme, Cabinet Spokesman says

The government has not taken a final decision on whether to continue or end its International Monetary Fund programme, Cabinet Spokesman Minister Nalinda Jayatissa said on Tuesday — a more guarded position than the one a senior colleague set out three days earlier.

Responding to a question at the weekly Cabinet briefing, Jayatissa said the decision would be made based on the global economic situation and Sri Lanka’s own economic conditions at the time, Daily Mirror reported.

He was responding to claims that Sri Lanka will exit the current programme in 2027.

A shift in tone

On 26 September, Minister Bimal Rathnayake — who holds the Transport, Highways and Urban Development portfolio and is Leader of the House — said in a television interview that the government would let the Extended Fund Facility lapse when it expires. “We will definitely exit this agreement,” he said, adding that Sri Lanka did not currently need a successor programme tied to debt restructuring.

Jayatissa’s formulation on Tuesday leaves that question open. The Cabinet Spokesman is the government’s designated voice on collective decisions, and his answer indicates no Cabinet decision has been taken either way.

The current EFF was approved in March 2023 and is scheduled to expire on 19 March 2027. Two reviews remain under it.

Confidence on the remaining tranches

Jayatissa said he was confident Sri Lanka would receive the seventh and eighth tranches under the EFF.

Sri Lanka had already achieved several targets under the programme while work continued on others, he said. “There are still several months available for us to achieve the remaining targets.”

The seventh review is still unresolved

An IMF staff team recently concluded a visit to Sri Lanka after discussions on recent economic developments, progress under the EFF and policy recommendations under the Fund’s 2026 Article IV consultation.

The mission, which ran from 10 to 23 September, ended without a staff-level agreement. The IMF said discussions would continue with the aim of reaching a staff-level agreement in the near term, paving the way for timely completion of the seventh review.

Until that review closes, the tranche Jayatissa expressed confidence about has not been released.

Sources

• No final decision on exit from IMF programme: Nalinda — Daily Mirror, September 29

This account rests on Daily Mirror’s report of Tuesday’s Cabinet briefing. No other verified newsroom had filed on the exchange at the time of writing.