# Sri Lanka budget faces post-IMF test as energy costs bite

- URL: https://talkfuse.com/story/sri-lanka-budget-faces-post-imf-test-as-energy-costs-bite/
- Published: 2026-11-06T03:34:56+00:00
- Updated: 2026-11-06T04:35:06+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/sri-lanka-budget-faces-post-imf-test-energy-costs-bite-6530001
- Topics: World

## Key points

- Sri Lanka’s budget must sustain its recovery after the IMF programme.
- Energy costs are adding pressure to household support.
- Debt and high borrowing costs remain risks.

## Summary

Sri Lanka’s 2027 budget will test whether its economic recovery can continue as a four-year IMF bailout approaches its end. President Anura Kumara Dissanayake is expected to balance investor confidence and fiscal discipline with efforts to support growth and shield households from rising energy costs, as the country prepares to return to international bond markets.

The economy has grown for 12 consecutive quarters, and official reserves reached $6.9 billion at the end of October. The government is targeting a primary surplus of 2.6 per cent of GDP in 2027, revenue and grants of 15.5 per cent, and public investment above 4 per cent; the budget is also required for an IMF review that could release about $345 million. Yet the World Bank forecasts growth easing to 4.2 per cent in 2027 and says poverty remains above pre-crisis levels, while borrowing costs could still reach 11 to 12 per cent.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.