COLOMBO, March 20 (Xinhua) -- Sri Lanka's economy remains stable but is significantly exposed to the conflict in the Middle East through trade, remittances, and tourism channels, which may weigh on its outlook, a senior International Monetary Fund (IMF) official said on Thursday.
Speaking at a press briefing, Julie Kozack, director of the IMF's Communications Department, said Sri Lanka's reform program had made significant progress despite the impact of Cyclone Ditwah.
She said Sri Lanka's economy grew by 5 percent in 2025, while inflation stood at about 1.6 percent in February 2026. She added that the country's debt restructuring was nearly complete and that gross international reserves had risen significantly.
Kozack said an IMF team will visit Sri Lanka from March 26 to April 9 for talks on economic policies, with the aim of completing a combined fifth and sixth review under the Extended Fund Facility program.
She said the IMF team will also engage with Sri Lankan authorities to better understand the possible impact of the Middle East conflict on the economy and will return with an updated assessment of how the IMF can continue supporting the country. ■
