The International Monetary Fund (IMF) has called on Sri Lanka to strengthen its institutional framework and improve public investment management to prevent a repeat of the country’s recent fiscal crisis.
Responding to a question by News 1st’s Zulfick Farzan, Thomas Helbling, Deputy Director of the IMF’s Asia Pacific Department, acknowledged that a range of factors had contributed to Sri Lanka’s economic collapse. However, he emphasized that the focus must now be on implementing forward-looking reforms to build long-term resilience.
“There were many factors that contributed to the crisis,” Helbling said. “The key is to move forward and establish the institutional framework—both in macroeconomic policy and governance.”
He highlighted effective public investment management as a cornerstone of a sustainable fiscal framework, commending Sri Lanka for its progress under the IMF-supported program. Helbling noted that continued adherence to reform benchmarks is essential to ensure that public spending remains efficient, transparent, and growth-oriented.
The IMF’s remarks come as Sri Lanka works to rebuild investor confidence, stabilize its economy, and lay the foundation for sustainable development following one of the worst financial crises in its history.
