Sri Lanka's lack of a staff-level agreement on the seventh review of the International Monetary Fund's Extended Fund Facility (EFF) does not indicate the country has derailed from its reform path, and discussions may take additional time to reach agreement on key policies and parameters, IMF Resident Representative for Sri Lanka Dr Martha Tesfaye Woldemichael said recently, speaking at a roundtable organised by Sampath Bank.

During the discussion, Woldemichael addressed concerns surrounding proposed amendments to Sri Lanka’s Anti-Corruption Act, stressing that the IMF’s concerns about certain provisions should not be interpreted as diminishing the significant governance reforms already implemented under the EFF programme. 

Dr Woldemichael noted that the IMF supports reviewing the legislation based on implementation experience, while raising concerns that some proposed amendments could weaken transparency and accountability, particularly in relation to public access to asset declarations, redaction rules and the scope of asset declarations. The IMF has similarly stated that preserving the integrity of the anti-corruption legislative framework remains critical to public trust.