The International Monetary Fund (IMF) concluded its visit to Sri Lanka but did not reach a staff level agreement which was part of the first review under a $2.9 billion bailout package, the fund said in a statement on Wednesday.

"Sri Lanka has made commendable progress in implementing difficult but much-needed reforms. These efforts are bearing fruit as the economy is showing tentative signs of stabilisation," the IMF said.

"The team will continue its discussions in the context of the First Review with the goal of reaching a staff-level agreement in the near term." (Reporting by Udith Jayasinghe, writing by Swati Bhat; editing by Sudipto Ganguly)