Peter Breuer, Senior Mission Chief for Sri Lanka at the International Monetary Fund (IMF), commended Sri Lanka’s economic recovery in recent years, saying that as economic opportunities return to Sri Lanka, incomes increase and poverty decreases, making it more attractive for people to stay in Sri Lanka rather than leave or migrate.

Speaking at a press conference on the completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) program by the IMF Executive Board, the IMF Senior Mission Chief said that Sri Lanka’s reserves under the EFF program have now increased significantly.

“They have already reached about half of the program’s objectives, which is very impressive,” Breuer said.

He continued: “I think things have really turned around in Sri Lanka. When I first arrived in Sri Lanka in June 2022, everyone was queuing somewhere to get fuel, to get cooking gas, to get food or medicine. Economic activity was very slow. I think Sri Lanka lost about 10% of real economic activity as a result of this crisis.”

“Since then, in the short time that the program has been in place, basically since 2023, 40% of the revenue lost over the last 5 years has already been recovered. In a short period of time, Sri Lanka has already made a very significant recovery – the recent growth figure is 5.5%. So things have turned around significantly in Sri Lanka and I think that will have an impact on the indicators that we care about, like poverty.”

“As economic opportunities return to Sri Lanka, incomes will increase and poverty will decrease. Also, it will be more attractive to stay in Sri Lanka than to leave or migrate. Those who have migrated can find opportunities again in Sri Lanka,” Breuer signed off.