The International Monetary Fund (IMF) has expressed optimism that Sri Lanka will soon finalize agreements with external commercial creditors. This expectation follows significant progress in the country’s debt restructuring efforts, according to Julie Kozack, Director of the IMF Communications Department.

Kozack said that discussions with external official creditors and the China Development Bank are at advanced stages. "There is a strong expectation that agreements with external commercial creditors consistent with program parameters will be reached soon," she stated during a press briefing on Thursday.

The IMF staff and Sri Lankan authorities reached a staff-level agreement on economic policies on March 21, which included the conclusion of the second review of the economic reform program and the 2024 Article IV Consultation. The IMF Executive Board is set to discuss this review on June 12.

Kozack noted that Sri Lanka's macroeconomic policy reforms are beginning to show positive results, including rapid disinflation, robust reserve accumulation, and early signs of economic growth. She also confirmed that most quantitative and structural conditionalities for the second review have been met or are in progress.

The next steps involve concluding negotiations with external commercial creditors and implementing agreements with official creditors. The domestic debt restructuring is largely completed, with ongoing discussions aimed at finalizing deals with external bondholders and the Export Import Bank of China.