The International Monetary Fund (IMF) says that the overall economic condition in Sri Lanka is improving as expected.
The economy is poised for a recovery this year. External balances are strong, remittance inflows continue at a high rate, tourism prospects are rapidly improving, and gross reserves remain at comfortable levels says an IMF mission led by Dr Brian Aitken.
In a statement released to the media on Wednesday, the mission has concluded that the government has met the targets agreed under the program for net international reserves and reserve money.
It predicts that average inflation for the year as a whole would stabilize in the high single digits.
The IMF says that it will remain engaged in a constructive dialogue with the government and an IMF team would visit Colombo, following parliamentary elections and the formation of the new cabinet to discuss with the government its plans for a full-year 2010 budget and tax reforms.
Sri Lankan parliamentary elections are due to be held on the eighth of April.