IMF concludes Article 2021 IV Consultation with Sri Lanka; A request to focus on monetary policy

The International Monetary Fund (IMF) stresses that Sri Lanka needs a tighter monetary policy to contain inflationary pressures while phasing out the Central Bank’s direct financing budget deficits.

In the Article IV consultation with Sri Lanka, the Executive Board of the IMF also recommended a gradual return to a market-determined and flexible exchange rate to facilitate external adjustment and rebuild international reserves.