Sri Lanka, July 25 -- An International Monetary Fund (IMF) staff mission, which concluded its visit to Colombo from July 21 to 25, has issued a strong warning despite acknowledging that Sri Lanka's economic reforms are "yielding commendable outcomes."

The IMF emphasised that sustained reform momentum is critical to safeguard stability and build resilience against increasing downside risks.

Evan Papageorgiou, IMF Mission Chief for Sri Lanka, highlighted the nation's recent positive macroeconomic developments.

These include real GDP growth of 4.8% year-on-year in the first quarter of 2025, inflation at -1.1% in the second quarter, gross international reserves reaching USD 6 billion by the end of June, and continued significant improve...