At the Sampath Bank Economic Forum 2026, Dr. Martha Tesfaye Woldemichael, the IMF Resident Representative for Sri Lanka, indicated that additional time is necessary for the discussions regarding the country’s seventh review under the Extended Fund Facility (EFF). The forum centered on Sri Lanka’s transition from economic stabilization to sustainable growth, emphasizing the importance of reforms and policy priorities to maintain progress.
The event, organized by Sampath Bank PLC on September 24 at Shangri-La Colombo, was themed “The Great Reordering: Global Shifts, Market Opportunities and Sri Lanka’s Next Growth Chapter.” It gathered policymakers, economists, and business leaders to discuss the economic outlook of Sri Lanka in light of the rapidly evolving global landscape.
A significant portion of the discussions focused on the ongoing seventh review of Sri Lanka’s EFF program, particularly the lack of a staff-level agreement following the IMF’s recent mission. Dr. Woldemichael clarified that this absence does not imply the program is faltering, as reaching agreement on essential policies may take more time. The IMF confirmed on September 23 that talks with local authorities were still in progress towards finalizing the seventh review. Dr. Woldemichael reported that nearly 85% of the program’s objectives have been accomplished and underscored the importance of continuing the reform agenda.
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She also expressed concerns regarding proposed changes to Sri Lanka’s Anti-Corruption Act, noting that the IMF’s apprehensions about certain provisions should not be seen as a reduction in the governance reforms achieved under the EFF program. The IMF supports a review of the legislation based on practical implementation but raised issues that some proposed amendments might undermine transparency and accountability, particularly regarding public access to asset declarations. Ensuring the integrity of the anti-corruption framework is crucial for maintaining public trust, according to the IMF.
Dr. Woldemichael characterized Sri Lanka’s macroeconomic developments as substantial, citing sustained growth, reduced inflation, increased tax revenue, a favorable primary balance, and significant progress in debt restructuring. She stressed that the upcoming challenge lies in transitioning from stabilization to transformation through reforms aimed at enhancing the business environment, attracting investments, boosting exports, and fostering long-term growth.
Central Bank Governor Dr. P. Nandalal Weerasinghe emphasized the necessity of maintaining macroeconomic and financial stability as Sri Lanka advances into its next growth phase. He highlighted the significance of ongoing reserve accumulation and robust buffers to mitigate external shocks, while reaffirming that monetary policy will remain data-driven and focused on price stability within a flexible inflation targeting framework.
Dr. Weerasinghe also pointed out the importance of addressing administrative hurdles, streamlining licensing and permitting processes, promoting digitalization, and removing trade barriers to cultivate a more conducive business environment. He noted that a stable monetary and financial system, bolstered by a well-capitalized banking sector, affords businesses greater predictability for investment and growth, while reforms that enhance access to regional and global markets can improve Sri Lanka’s competitiveness.
The forum included further insights from Dr. Weerasinghe and Dr. Woldemichael, with an opening address given by Hiran Cabraal, Independent Non-Executive Director of Sampath Bank PLC. The panel discussion, moderated by Tharindu Abeywardana, Chief Economist and Head of Research at Sampath Bank PLC, delved deeper into Sri Lanka’s growth opportunities and the impacts of global economic changes.
In closing remarks, Sampath Bank’s Managing Director and CEO, Sanjaya Gunawardana, stressed the necessity for collective action to propel Sri Lanka’s progress. He urged policymakers, businesses, and financial institutions to collaborate in transforming emerging opportunities into sustainable growth, reinforcing Sampath Bank’s dedication to partnering with stakeholders as the country embarks on its next phase of economic development.
Photo caption: Image 1: Dr. Martha Tesfaye Woldemichael, IMF Resident Representative for Sri Lanka (top left); Dr. P. Nandalal Weerasinghe, Governor, Central Bank of Sri Lanka (bottom left); Sanjaya Gunawardana, Managing Director and CEO, Sampath Bank PLC (top right); and Hiran Cabraal, Independent Non-Executive Director, Sampath Bank PLC (bottom right). The central panel captures the Forum discussion featuring Dr. P. Nandalal Weerasinghe, Dr. Martha Tesfaye Woldemichael, and moderator Tharindu Abeywardana, Chief Economist and Head of Research, Sampath Bank PLC.
