A senior International Monetary Fund (IMF) official stated that Sri Lanka is in a stronger position than at the peak of its economic crisis to support citizens affected by rising energy costs. 

Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, praised the country's progress over the past three years in strengthening its fiscal position, especially through increased tax revenue as a share of GDP. 

He noted that these improvements have helped Sri Lanka rebuild fiscal buffers, making it better equipped to provide targeted support without compromising economic stability. 

Srinivasan emphasised that while Sri Lanka remains vulnerable to global energy price shocks due to its reliance on imported oil and gas, its recent fiscal reforms have marked a positive shift. 

The official highlighted that Sri Lanka’s revenue-to-GDP ratio has doubled since the crisis’s lowest point, enhancing policymakers’ capacity to assist those most impacted by rising costs. 

He cautioned that continuing with reform efforts is crucial to ensure inclusive and sustainable growth in the future.