The office in Colombo is being wound up late January, when the term of its current resident representative, Luis Valdivieso ends.
"The decision reflects the evolving nature of the IMF's relationship with Sri Lanka, with Sri Lanka no longer having a program with the IMF, and also was taken in the context of the overall declining real administrative budget available to the IMF," Valdivieso said.
He said the IMF and the Sri Lankan authorities will continue close and collaborative relationship and maintain an open dialog.
"The IMF also remains firmly committed to the government's efforts to promote sustained economic growth and poverty reduction. IMF staff teams will continue to visit Sri Lanka regularly to exchange views with the authorities, as they do in all member countries."