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Tuesday, October 13 2026
Tuesday, October 13 2026
MONETABRIEF – Sri Lanka is ready to consider a new International Monetary Fund program for growth, but the government was not in a firm stance that it will or will not go for a new program, President Anura Kumara Dissanayake said.
"Sri Lanka has stabilized the economy to a great extent in every area," President Dissanayake told Sri Lanka Economic and Investment Summit organized by the Ceylon Chamber of Commerce Monday.
"And the next objective is to grow by maintaining stability.
"If we can go for a new program to reach growth, we are ready to do so.
"We looked back at what we wanted to do, and to what extent the IMF program was an obstacle. There were only a few. There was not much difference. That is why we were able to come this.
"What we are discussing is what type of program the next should be.
"We are not in a hard stance that we should not go, or that we should. We are still on an open stance."
Sri Lanka had got a rating upgrade and there were some more steps to go, and also to reach the expected level of reserves.
If that was done Sri Lanka could go ahead, he said.
But there was also mounting global uncertainties, he said.
Sri Lanka has been on back-to-back IMF programs since the end of a civil war, as flexible inflation targeting pushed the country into a series of currency crisis at the slightest shock as the economy recovered from the previous collapse.
The rupee also collapsed in the first half of 2026, and inflation has shot up as the central bank dishonored its note issue, after cutting rates in 2025 and bloating it.
The note issue was by monetizing the balance of payments, and monetizing dollar balances of banks through swaps and dishonoring the note issue as oil prices rose.
The central bank in October also won the right to create high levels of inflation for the next three years with the support of the IMF itself, which analysts have warned will make the country vulnerable not only to balance of payments trouble but also to a second sovereign default. (Colombo/Oct12/2026)
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