SL currently on a knife- edge path, cautions IMF

Peter Breuer
PIC BY PRADEEP PATHIRANA

• Says SL could easily go back to a vicious cycle, which should be prevented
• Shares many proposals received by different parties on restructuring programme
• Says willing to listen to alternative suggestions, provided they are realistic and achievable within time-frame

While Sri Lanka is gearing up for elections this year, which could result in uncertainties, the International Monetary Fund (IMF) cautioned that it is absolutely key that the programme objectives are achieved, because with those, Sri Lanka has a chance of emerging from the crisis.
“The path is a knife-edge path. We have to remember that. So, yes, we acknowledge in our press report the green shoots that we see for the economy and that’s the beginning of a virtuous cycle and we have to keep it there,” said IMF Senior Mission Chief for Sri Lanka Peter Breuer, speaking to journalists in Colombo this week.
“It is a knife edge and could easily go back to a vicious cycle and that’s what we want to prevent,” he added.
The IMF has received many proposals this time round, also from different political parties, which have been vocal about renegotiating the bailout programme, so that the hardships of the public are reduced.

Breuer said the IMF is willing to listen to the alternative suggestions of how the programme objectives can be reached. However, the suggestions must be realistic and achievable within the time-frame of the programme.
“Let me just assure you that the programme is the result of robust discussions that we had in the summer of 2022 and since then, at the periodic reviews, where we look at the progress under the programme. 
So, I would argue it is quite well thought out.  But of course, we are willing to listen to alternative views. The important part is that the hard-won gains of the Sri Lankan people over the last two years are not unravelled,” he said.