Sri Lanka: Technical Assistance Report-Preparing a Fiscal Risk Statement

The International Monetary Fund (IMF) and the World Bank Group (WBG) provided technical assistance to Sri Lanka to prepare a Fiscal Risk Statement (FRS) as part of its broader public financial management reforms. In response to the recent fiscal crisis, the authorities have implemented reforms to mitigate fiscal risks. While fiscal risk situation has improved, fiscal risks in areas such as macroeconomic shocks, state-owned enterprises, guarantees, public-private partnerships, financial sector, and natural disasters remain substantial. Recommendations focused on establishing clear roles and responsibilities, enhancing data quality and analysis, planning clear public communication to ensure timely preparing the 2025 FRS and improving it over time.