Sri Lanka, March 5 -- The International Monetary Fund (IMF) will closely monitor Sri Lanka's fiscal and structural reforms ahead of the fourth review, following the successful completion of the third review under the Extended Fund Facility (EFF) programme.

Last Friday, the IMF approved the third review, allowing Sri Lanka to draw US$ 334 million, bringing total disbursements under the programme to US$1.34 billion. However, the Fund has cautioned that further reforms are critical to sustaining economic recovery.

During a virtual press briefing yesterday, the IMF stressed the need to strengthen tax compliance and eliminating exemptions as essential to maintaining fiscal discipline.

To meet the 2025 tax revenue target of 13.9 percent of G...