Industry and Entrepreneurship Development Minister Sunil Handunnetti briefed the visiting International Monetary Fund delegation on Monday on the challenges facing small and medium-sized enterprises and Sri Lanka’s plans for a production-based economy.
The meeting formed part of the IMF’s fifth and sixth review consultation, with the mission due to conclude talks on April 9. Handunnetti outlined policy measures already introduced to support SME growth and proposed further incentives and financial facilities aligned with the Extended Fund Facility programme.
Discussion areas included streamlining export procedures, improving conditions for foreign investment and accelerating the transition away from an import-dependent economy. The minister flagged the pressure on domestic industrialists from the current dual macro shock — Middle East energy disruptions and the impending 44 per cent US tariff on Sri Lankan exports, which takes effect April 9.
According to Newswire, IMF representatives acknowledged the importance of industrial development within the broader reform framework but made no specific commitments. No dollar figures, timelines or new facilities were announced.
The briefing is one of several sectoral consultations this week as the IMF team prepares its assessment ahead of the review conclusion. A favourable staff-level agreement would unlock the next tranche of roughly US$700 million for Sri Lanka.
SME access to credit has been a long-standing bottleneck, with banks pulling back on a Rs. 95 billion concessional credit line earmarked for smaller exporters. Handunnetti’s engagement signals government pressure on the IMF to carve out fiscal space for production-sector support at a moment of acute external shocks.
