The Sri Lankan government must adhere to the International Monetary Fund’s (IMF) Extended Fund Facility conditions until 2028 to ensure prudent fiscal management for the 2025 budget, according to Minister of Transport, Highways, and Mass Media, Dr. Bandula Gunawardana. Regardless of the governing administration, securing the necessary foreign funding to address the external resource gap is critical, with an estimated US $5018 billion required for international transactions by 2025. To bridge this gap, the IMF has agreed to provide $663 million under an extended credit facility, along with an additional $700 million to bridge the 2025 budget deficit. The World Bank (WB) and the Asian Development Bank (ADB) have pledged $400 million and $300 million, respectively. Furthermore, $3,655 million in debt relief is anticipated for next year’s budgt, crucial for covering public servant salaries, pensions, and subsidies. Despite efforts to minimise budget deficits, a shortfall of $3,911 million is projected by 2027. To prepare the budget for that year, $629 million will be allocated, in addition to $600 million from the IMF, $300 million from the WB and $300 million from the ADB. However, an additional $1.5 billion will be needed, requiring access to the international market. Given the global market conditions, Sri Lanka’s sovereign bonds can only be issued in 2027, provided foreign reserves reach $14 billion, a significant increase from the current $5.5 billion