The Intergovernmental Group of Twenty-Four (G-24) has expressed concerns that increasing global risks—such as geopolitical conflicts, rising inflation rates, and tightening financial conditions—may jeopardize the fragile economic recovery of developing nations, including Sri Lanka.
In a statement released after their meeting on April 14, 2026, which took place during the IMF-World Bank Spring Meetings in Washington, the G-24 highlighted the growing uncertainty in the global economy. This is particularly influenced by the ongoing conflict in the Middle East, which has significant repercussions on energy prices and inflation.
The group pointed out that while global growth is decelerating, inflationary pressures remain high, creating formidable challenges for emerging and developing economies that are still in the process of rebuilding their policy frameworks following recent crises.
For nations like Sri Lanka, which is currently engaged in a reform program supported by the IMF, the external economic landscape presents further obstacles. These include increased import expenses, stricter financing conditions, and potential risks to remittances and tourism driven by global instability.
The G-24 emphasized the critical need for enhanced international collaboration to assist vulnerable economies. This includes improving access to concessional financing, timely debt restructuring, and necessary reforms to the global financial system.
A significant issue raised was the increasing debt burden faced by developing countries. The group advocated for quicker and more efficient debt resolution processes, cautioning that delays in restructuring efforts could derail reform initiatives and diminish recovery prospects.
Sri Lanka, which is currently undergoing a multi-year adjustment under an IMF Extended Fund Facility following its economic downturn in 2022, is particularly vulnerable to such global disturbances. The IMF has already indicated that external risks, including spikes in energy prices, could negatively affect inflation and growth in the country.
The G-24 further urged multilateral organizations to take a more active role in mobilizing climate finance and fostering sustainable development. They warned that the limited fiscal capacity in many nations restricts their ability to invest in resilience initiatives.
Additionally, the group called for reforms aimed at making the global financial system more inclusive and responsive to the needs of developing nations, advocating for greater representation and equitable access to resources.
As Sri Lanka continues on its path to recovery, the G-24’s message highlights the necessity of ongoing reforms and increased global support to effectively navigate an increasingly unstable external environment.
Financial Chronicle Biz English | Sri Lanka Business News.
