FINANCIAL CHRONICLE – Martha Tesfaye Woldemichael, the IMF Resident Representative in Sri Lanka, has clarified that the lack of a staff-level agreement does not necessarily indicate that the International Monetary Fund’s Extended Fund Facility (EFF) program is failing to progress. During her remarks at the Sampath Bank Economic Forum 2026, she explained that negotiations may take longer to finalize agreements on essential policies and parameters.

The event focused on Sri Lanka’s shift from economic stabilization towards achieving sustainable growth and brought together a diverse group of policymakers, economists, and business leaders. Currently, the seventh review of Sri Lanka’s EFF program is in progress.

Woldemichael highlighted that approximately 85% of the objectives outlined in the current program have been accomplished, emphasizing the importance of continuing with the reform agenda. She also expressed concerns regarding proposed changes to Sri Lanka’s Anti-Corruption Act. Woldemichael pointed out that while the IMF endorses the review of the legislation based on its implementation, there are worries that some amendments might undermine transparency and accountability, particularly concerning public access to asset declarations and the rules governing them.

Furthermore, the IMF has stressed that maintaining the integrity of the anti-corruption framework is essential for fostering public trust. Woldemichael identified the next challenge as transitioning from stabilization to transformation through reforms that enhance the business environment, draw in investments, boost exports, and create sustainable growth.

The forum also included perspectives from Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, and Hiran Cabraal, Independent Non-Executive Director of Sampath Bank. The discussion, led by Tharindu Abeywardana, Chief Economist and Head of Research at Sampath Bank, explored Sri Lanka’s growth potential and the effects of global economic changes.

Sanjaya Gunawardana, Managing Director and CEO of Sampath Bank, underscored that Sri Lanka’s advancement necessitates a unified approach.

(Colombo/Oct4/2026)