The International Monetary Fund (IMF) has reaffirmed that the restoration of cost recovery for energy pricing remains a critical "prior action" for the completion of Sri Lanka's combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF).

During a press briefing on May 14, 2026, Director of the Communications Department at the IMF, Julie Kozack addressed concerns regarding the consistency of current government subsidies with the IMF’s framework. Responding to a query from Ada Derana regarding a reported Rs. 100 per liter diesel subsidy, Kozack emphasized that the path to Executive Board approval required specific steps concerning electricity and fuel pricing.

According to the IMF, the authorities are tasked with a "two-part" strategy to meet program conditions. "There were a few prior actions that needed to be completed before we could bring the program to our Executive Board, and these were the restoration of the cost recovery, electricity, and fuel pricing, while also protecting the vulnerable," Kozack stated.

She clarified that moving toward full cost recovery must be balanced with ensuring that the most vulnerable segments of the population remain shielded from the impact of these adjustments.