The International Monetary Fund (IMF) chief, Kristalina Georgieva, has praised Sri Lanka’s economic recovery, calling it a "remarkable turnaround" and reaffirming the IMF’s commitment to supporting the cash-strapped nation.

During a virtual meeting with Sri Lankan President Anura Kumara Dissanayake, Georgieva acknowledged the country’s progress since securing a $2.9 billion IMF bailout in 2023. The financial package was granted after Sri Lanka declared its first-ever sovereign default in April 2022, following a severe foreign exchange crisis and economic meltdown.

“The economy has stabilized and is now performing well,” Georgieva said in a video shared by the Sri Lankan presidency. “This is crucial, especially for the poor. We see a remarkable recovery from the brink of collapse.”

Dissanayake, who took office in September as a self-proclaimed leftist leader, had initially pledged to renegotiate the IMF loan. However, he has largely continued the austerity measures introduced by his predecessor.

Georgieva emphasized the importance of domestic reforms amid global economic uncertainty. “Taking action to strengthen the economy is even more critical in these uncertain times,” she noted. “The IMF remains eager to fully support your journey to recovery.”

Dissanayake expressed his commitment to reducing national debt and attracting private investment. “To achieve this, we will introduce key legislation, including an Investor Protection Act, ensuring a secure and favorable environment for investors,” he stated.

Last month, the IMF disbursed $334 million—the fourth installment of Sri Lanka’s four-year bailout program—underscoring the country’s steady progress. The IMF has highlighted that reforms are yielding positive results, with Sri Lanka’s real GDP recovering 40% of its losses incurred between 2018 and 2023.