The International Monetary Fund’s mission chief for Sri Lanka, Evan Papageorgiou, has reaffirmed that protecting the poor and vulnerable remains a cornerstone of the country’s Extended Fund Facility programme, citing a mandatory floor on social spending that has now been met for two consecutive quarterly review points.
Responding to questions from NewsFirst on whether the government can expand social welfare under the ongoing IMF-supported reform, Papageorgiou said the programme includes a binding minimum on social expenditure to shield low-income families. The benchmark is reviewed quarterly. Sri Lanka, he confirmed, met the target at both end-December 2025 and end-March 2026.
Papageorgiou also said the IMF is encouraging authorities to strengthen the targeting, coverage and adequacy of social safety nets. A key step is the recertification of applicants under the Aswesuma welfare scheme, which is aimed at reducing errors and ensuring benefits reach those most in need.
The remarks are the latest in a series of public clarifications from the mission chief through the fourth review cycle of the EFF. Papageorgiou has previously addressed debt risks and the policy stance on monetary policy, the need for cost-reflective fuel and electricity pricing, and the rupee as a first line of defence for the economy.
Sri Lanka’s Department of National Planning has been overseeing the Aswesuma beneficiary recertification, with a Phase I census originally targeted for completion by the end of May. The Finance Ministry has also disclosed earlier this year that overpayments and double-counting had been identified in the scheme, prompting the targeted review the IMF is now publicly endorsing.
