• Government’s priorities are the restructuring of debts and SOEs

By Sandun A. Jayasekera

Dismissing popular belief that there will be relief for the people after  releasing of the second tranche of the IMF’s extended Fund Facility of $ 2.9 billion, cabinet spokesman, Minister Dr. Bandula Gunawardana said the government was not in a position to give a time frame for any reduction of power tariff, price of oil and gas or essential commodities.    

Responding to Daily Mirror at the weekly post cabinet news briefing yesterday, minister Gunawardana said the successive Sri Lanka governments had failed to utilize the global lender’s assistance for the optimum benefit of the country.  

“We have obtained IMF’s lending facility for 16 times before the current one but successive governments have failed to meet the conditions laid down by the lender and therefore did not reach the goals set for economic revival,” he stressed.   The government’s priorities are the restructuring of debts and SOEs. The government is also committed to bring the CoL to a single digit, rupee under 200 against the dollar and also to increase state revenue to 20% from the current 8% of the GDP. All these targets will be disrupted if the government attempts to introduce price revisions without the consent of the IMF he added.  

The government has chosen the France-based Lazard as financial advisor and Clifford Chance LLP as legal advisor to support the country on debt restructuring. The government cannot ignore their advice and take decisions accordingly. A significant relief for the people can be expected only with the approval of the IMF and advice of the two French consultants, Minister Gunawardana stressed.   

The government is also in touch with the World Bank, the ADB and JICA to obtain financial assistance in addition to IMF’s EFF with the aim of increasing the foreign reserves to a minimum US$ 7 billion by the end of the year, Minister Dr. Gunawardana said.  

• Government is also in touch with the World Bank, the ADB and JICA to obtain financial assistance in addition to IMF’s EFF