The Executive Board of the International Monetary Fund (IMF) completed the third review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR 254 million (about US$334 million). This brings the total IMF financial support disbursed so far to SDR 1.02 billion (about US$1.34 billion), according to a statement from it.

The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion. The program supports Sri Lanka’s efforts to restore and maintain macroeconomic stability and debt sustainability while protecting the poor and vulnerable, rebuild external buffers, and enhance growth-oriented structural reforms including by strengthening governance.

Following the Executive Board discussion on Sri Lanka, Mr. Kenji Okamura, Deputy Managing Director, issued the following statement:

“Reforms in Sri Lanka are bearing fruit and the economic recovery has been remarkable. Inflation remains low, revenue collection is improving, and reserves continue to accumulate. Economic growth averaged 4.3 percent since growth resumed in the third quarter of 2023. By end-2024, Sri Lanka’s real GDP is estimated to have recovered 40 percent of its loss incurred between 2018 and 2023. The recovery is expected to continue in 2025. As the economy is still vulnerable, it is critical to sustain the reform momentum to ensure macroeconomic stability and debt sustainability, and promote long-term inclusive growth. There is no room for policy errors.

“Program performance has been strong with all quantitative targets met, except for the indicative target on social spending. Most structural benchmarks due by end-January 2025 were either met or implemented with delay.

“Sustained revenue mobilization is crucial to restoring fiscal sustainability and ensuring that the government can continue to provide essential services. Boosting tax compliance and refraining from tax exemptions are key to maintaining support for economic reforms. To ease economic hardship and ensure the poor and vulnerable can participate in Sri Lanka’s recovery it is important to meet social spending targets and continue with reforms of the social safety net. Going forward, social support needs to be well-targeted towards the most disadvantaged so as to promote inclusive growth with limited fiscal space. Restoring cost-recovery electricity pricing without delay is needed to contain fiscal risks from state-owned enterprises. A smoother execution of capital spending within the fiscal envelope would foster medium-term growth.

“The progress to advance the debt restructuring to restore Sri Lanka’s debt sustainability is noteworthy. The recent successful completion of the bond exchange is a major milestone towards restoring debt sustainability. Timely finalization of bilateral agreements with creditors in the Official Creditor Committee and with remaining creditors is a priority now.

“Monetary policy should prioritize maintaining price stability, supported by sustained commitment to prohibit monetary financing and safeguard Central Bank independence. Continued exchange rate flexibility and gradually phasing out the balance of payments measures remain critical to rebuild external buffers and facilitate rebalancing.

“Resolving non-performing loans, strengthening governance and oversight of state-owned banks, and improving the insolvency and resolution frameworks are important priorities to revive credit growth and support the economic recovery.

“Prolonged structural challenges need to be addressed to unlock Sri Lanka’s long-term potential, including steadfast implementation of the governance reforms.”

The cultural arm of the High Commission of India in Colombo, Swami Vivekananda Cultural Centre celebrated the 9th Ayurveda Day in Colombo on 1st November 2024. The High Commissioner of India H.E. Santosh Jha inaugurated the 9^th Ayurveda Day with the Vice Chancellor of the University of Colombo Prof. H. D Karunaratne at the New Arts Theatre of the University.

The event was organised by the Centre along with the Faculty of Indigenous Medicine of the University of Colombo for the second time in collaboration with the Department of Ayurveda, Government of Sri Lanka, Gampaha Wickramarachchi University of Indigenous Medicine and Faculty of Siddha Medicine of the Eastern University, Trincomalee Campus.

While delivering the inaugural address, the High Commissioner stated that Ayurveda serves as a profound bridge between India and Sri Lanka, connecting the two nations through shared heritage and holistic healing practices. Rooted in ancient Indian wisdom, Ayurveda was introduced to Sri Lanka thousands of years ago, where it merged with indigenous knowledge, creating a unique yet interconnected tradition. Both countries share a deep respect for Ayurveda’s principles, focusing on balance, natural remedies, and personalized health care. The event was attended by over 300 scholars, practitioners and students from different universities and institutions.

Ayurveda Day is officially celebrated every year on auspicious day of ‘Dhanwantari Jayanti – Dhanteras’ since 2016. The theme for 9th Ayurveda Day is ‘Ayurveda Innovation for Global Health’ that represents a fusion of ancient wisdom with modern science, bringing Ayurveda’s holistic practices to a world seeking sustainable wellness solutions. 

On this occasion, two renowned Ayurveda scholars of Sri Lanka– Senior Prof. Sarath Gamini Ranasingha and Emeritus Professor (Mrs) E.R.H.S.S. Ediriweera were felicitated for their lifelong contributions to the field of Ayurveda in Sri Lanka. The winners of different competitions were also awarded with medals and book-vouchers.

Ayurveda, a natural system of medicine, originated in India more than 3,000 years ago. The term Ayurveda is derived from the Sanskrit words ayur (life) and veda (science or knowledge). Thus, Ayurveda translates to knowledge of life, with its natural therapies focused on ways to regain the balance between body, mind, spirit, and environment.

The Embassy of Sri Lanka in the Netherlands, together with the Siddhalepa Ayurveda Resorts & Spa, organized a tourism promotional event, with a special focus on the Sri Lankan indigenous medical system. The event was held at the Embassy premises on 22 October 2024. Dutch travel agents, tour operators and tourism-related media attended the event and were educated on the benefits of Sri Lankan Ayurveda and leisure/health treatments available in the sector.

Addressing the gathering, Ambassador of Sri Lanka to the Netherlands, Rekha Gunasekera expressed her gratitude to the attendees and industry representatives, for their support to promote Sri Lanka as a premier holiday destination among the Dutch travelers. She also expressed willingness to work closely with them to further increase the number of tourist arrivals from the Netherlands to Sri Lanka. Moreover, she stated that the number of Dutch tourists visiting Sri Lanka this year has already surpassed last year’s records. The Netherlands is among the top 10 tourist sourcing markets for Sri Lanka. 

Senior Marketing Manager of Siddhalepa Ayurveda Resort & Spa, Ushan Edirisinghe delivered a presentation on the history of Sri Lankan Ayurveda and on Siddhalepa Ayurveda Resorts & Spa as well as its products. The participants were provided with an opportunity to sample Siddhalepa products and were treated to a variety of healthy Sri Lankan food items. A raffle was also drawn and the lucky winner was presented with a gift voucher for a full board stay at Siddhalepa Ayurveda Resort & Spa for one week.