IMF stresses need for trade liberalisation, digitisation, regulatory streamlining to unlock growth in Sri Lanka
Posted on April 9th, 2026
KELUM BANDARA Courtesy The Daily Mirror
Colombo, April 9 (Daily Mirror) – The International Monetary Fund (IMF) stressed today that Sri Lanka must also continue with trade liberalisation, digitalisation, regulatory streamlining, and labour market modernisation to unlock durable, inclusive growth.
Addressing a media conference at the conclusion of the latest mission, IMF Mission Chief for Sri Lanka Evan Papageorgiou said that, on the fiscal front, it is critical to maintain strong revenue mobilisation and prudent spending.
He said that sustained improvements in tax compliance, broadening the tax breaks, and restoring cross-recovery pricing for fuel and electricity will help reduce fiscal risks.
These measures must be implemented in a way that protects the most vulnerable,” he said.
As the government undertakes reconstruction, it is vital that projects are prioritised carefully (1:31) and executed transparently, in line with the Public Financial Management Act. Social safety nets must be preserved and strengthened to ensure that support reaches those who need it the most. Monetary policy should remain data-driven and responsive to the evolving priorities and conditions of the country,” he said.
He also emphasided that the Central Bank’s independence must be upheld, and it should continue to refrain from monetary financing of the budget. Pic by Pradeep Pathirana
