In early February the IMF released a sixth tranche of funds, worth around US$220m, under the Stand-By Arrangement (SBA) with Sri Lanka. The IMF remains positive about Sri Lanka's performance, noting that GDP growth in 2010 is estimated at an impressive 7.8%. Although the Fund highlighted the fact that inflation had risen, it attributed this to rising food prices, primarily linked to the floods that have affected large areas of land used for growing rice and vegetables. The government's figures show that consumer price inflation hit 7.8% year on year in February, up from 6.8% in January.

The IMF remains confident that the budget deficit target of 6.8% of GDP will be adhered to in 2011. Its resident representative, Koshy Mathai, pointed out in February that Sri Lanka has a relatively low level of foreign direct investment, although such inflows are set to double in 2011 from last year's figure of US$375m. He also called on the government to allow flexibility in the exchange rate so as to prevent currency strains building up.