The Intergovernmental Group of Twenty-Four (G-24) has issued a cautionary statement regarding the increasing global risks that threaten to disrupt the fragile economic recoveries in developing nations like Sri Lanka. This warning was conveyed in a communiqué following their meeting on April 14, 2026, which took place during the IMF-World Bank Spring Meetings in Washington, D.C.
In their message, the G-24 highlighted the renewed uncertainties facing the global economy, largely attributed to the ongoing conflicts in the Middle East and their subsequent impact on energy prices and inflation rates. The group pointed out that while global growth is decelerating, inflationary pressures remain high, creating substantial challenges for emerging and developing economies that are still in the process of strengthening their economic policies after recent crises.
For countries such as Sri Lanka, which is currently executing a reform program supported by the IMF, the external landscape presents additional challenges. These challenges include increased import expenses, stricter financing conditions, and potential risks to remittances and tourism due to global instability.
The G-24 emphasized the necessity for enhanced international collaboration to assist vulnerable economies. This includes improving access to concessional financing, facilitating timely debt restructuring, and reforming the global financial system to better support these nations.
A pressing concern raised by the group was the escalating debt burden faced by developing countries. They called for quicker and more efficient debt resolution processes, warning that delays in restructuring could jeopardize reform initiatives and weaken recovery potential.
Sri Lanka, currently engaged in a multi-year adjustment program under the IMF’s Extended Fund Facility following its economic crisis in 2022, remains particularly vulnerable to these global shocks. The IMF has already indicated that external risks, such as spikes in energy prices, could adversely affect inflation and economic growth in the country.
Moreover, the G-24 urged multilateral institutions to enhance their efforts in mobilizing climate finance and promoting sustainable development, cautioning that the limited fiscal capacity of many countries restricts their ability to invest in resilience-building measures.
The group also called for reforms aimed at making the global financial system more inclusive and responsive to the needs of developing nations, advocating for greater representation and equitable access to resources.
As Sri Lanka progresses on its recovery path, the message from the G-24 highlights the critical need for ongoing reforms coupled with stronger global support to navigate an increasingly unpredictable external environment.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
