International Monetary Fund’s (IMF) Senior Mission Chief for Sri Lanka Peter Breuer commended Sri Lanka’s economic recovery in the recent years, and stated that as economic opportunities return to Sri Lanka, income will be increased and poverty will be reduced making it more attractive for the people to remain in Sri Lanka, not leave or emigrate.
Speaking during the Press Conference on the IMF Executive Board’s completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) program, the IMF Senior Mission Chief stated that Sri Lanka’s reserves have increased significantly so far under the EFF program.
“They have reached about half of the program objectives already which is very impressive”, Breuer expressed.
Commenting further, he said: “I think it’s quite clear that things really have turned around significantly in Sri Lanka. When I first got to Sri Lanka in June 2022 everybody was on a line somewhere to get fuel, to get cooking gas, get food or medication. Economic activity was very subdued. I think in real terms Sri Lanka lost around 10% of its economic activity as a result of this crisis.”
“Since then in the short amount of time that the program has been there, basically since 2023, it has already recovered 40% of the income it has lost in the preceding 5 years. In a short amount of time Sri Lanka has already a very significant recovery – the most recent growth number was 5.5%. So I think the things are turning around significantly in Sri Lanka and that will have an impact on the indicators that we care about such as poverty.”
“As economic opportunities return to Sri Lanka, income will be increased and poverty will be reduced. Also, it will be more attractive to remain in Sri Lanka not leave or emigrate. Those who have emigrated will find opportunities back in Sri Lanka”, Breuer signed off.
