An International Monetary Fund mission said it had reached a staff-level agreement with Sierra Leone on the third review of the country’s Extended Credit Facility supported program and on the authorities’ request for a Resilience and Sustainability Facility arrangement focused on climate resilience. The mission said Sierra Leone’s recent policy adjustment had produced a domestic primary surplus of 1.3 percent of GDP in 2025 and, together with tighter monetary policy, had helped stabilize the exchange rate, reduce inflation, contain borrowing costs and restore private access to credit, but it also warned that weaker revenue performance and rising spending pressures are making implementation more difficult. The mission said fiscal consolidation should continue while protecting priority social spending and temporarily accommodating pressures linked to the war in the Middle East. It noted that fuel price subsidies introduced in April are to remain temporary, subject to an agreed cost ceiling and transparent treatment in the fuel price formula. It added that monetary policy may need further tightening if energy-related inflation pressures persist, with inflation projected at about 11.6 percent by end-2026 before returning to single digits by end-2027. The banking system was described as profitable and broadly resilient, though still exposed to sovereign risk. Growth is projected to slow to 4.0 percent in 2026 amid external spillovers. The proposed RSF would support reforms in climate-sensitive public investment management, climate resilience and financial stability. The IMF Executive Board is expected to consider both the third review and the RSF request in the coming weeks.
International Monetary Fund2026-06-10
International Monetary Fund reaches staff-level agreement on Sierra Leone’s third Extended Credit Facility review and proposed Resilience and Sustainability Facility
The International Monetary Fund mission reached a staff-level agreement with Sierra Leone on the third review of its Extended Credit Facility program and on a Resilience and Sustainability Facility focused on climate resilience. The mission reported improved fiscal and monetary outcomes but weaker revenue and rising spending pressures, calling for continued fiscal consolidation, possible further monetary tightening, and temporary fuel subsidies within a cost ceiling. The Resilience and Sustainability Facility would support reforms in climate-sensitive public investment management, climate resilience, and financial stability, with both arrangements to be considered by the IMF Executive Board soon.