5 October 2024 12:19 am Views - 663
The International Monetary Fund (IMF) emphasised that Sri Lanka must maintain its reform trajectory, warning that “important vulnerabilities” and “uncertainties” remain, despite the significant progress in key macroeconomic indicators.
Responding to media queries on Thursday, IMF Communications Director Julie Kozack said Sri Lanka has begun to see an economic recovery, driven by the IMF programme, which focuses on fiscal consolidation and reform efforts. She noted improvements in economic growth, inflation levels, foreign reserves and revenue mobilisation.
However, Kozack stressed that now is not the time to become complacent.
“As we have said before, important vulnerabilities and uncertainties do remain and this means that sustaining reform momentum is critical,” she said.
A high-level IMF delegation, led by Asia Pacific Department Director Krishna Srinivasan, concluded discussions with Sri Lanka’s new government under President Anura Kumara Dissanayake and his economic team on Thursday.
“The delegation is discussing with the authorities the latest economic developments and their economic reform objectives,” Srinivasan said.
During a second meeting with President Dissanayake on Thursday, the two sides reportedly explored alternative approaches to ease the burden on citizens. According to the Presidential Media Division, the three-day discussions ended successfully.
The IMF delegation is expected to announce the dates for the third review under the Extended Fund Facility programme soon.
Meanwhile, the Sri Lankan government reiterated that it would not discuss any structural changes to the IMF agreement during the current talks, in line with the new administration’s election manifesto. However, the government plans to address those matters after a review later this month.
Kozack also noted that the in-principle agreement reached with Sri Lanka’s bondholders on September 18 remains contingent on confirmation of comparable treatment by the country’s Official Creditor Committee. (NF)