Sri Lanka Fails to Meet IMF Programme Commitments, Highlighting Governance Challenges

1 month ago

Sri Lanka falls short on meeting 33% of commitments in its IMF programme by end-February, according to Verité Research’s ‘IMF Tracker’ update.

Governance-related commitments, aimed at transparency and legislation for governance improvement, remain largely unmet.

Verité Research highlights Sri Lanka as the first Asian country to undergo an IMF-led Governance Diagnostic Assessment, identifying poor governance as central to the economic crisis.

Approximately 36% of commitments are classified as ‘unknown’ due to insufficient data. Out of 45 commitments due by end-February, only 31% are verifiably ‘met’.

Despite receiving second-round IMF funding in December 2023, key governance-related actions, including parliamentary approval on banking regulations and legislation changes for debt management, remain unaddressed, exacerbating governance issues.