Specifics of engagement with SL to be discussed after review: IMF

Gerry Rice

Sri Lankan authorities have expressed interest in a range of options for future engagement with the International Monetary Fund (IMF), but the specifics will be discussed after the next review in mid-April, the IMF said on Thursday.

Responding to a question at a news briefing in Washington as to whether there will be a new programme with Sri Lanka after the parliamentary polls this year, Gerry Rice of the IMF Communications Department said the seventh and final review of the current Fund supported programme is scheduled to take place after mid-April.

“We will be looking at this situation then and thereafter. We have a long history of engagement with Sri Lanka of course. During the recent staff visit, the authorities expressed interest in a range of options for future engagement with the Fund but the specifics of that will be discussed after this next review in mid-April,” he said. 

Amid concerns over fiscal slippages and uptick in fiscal deficit, the Central Bank (CB) is mulling entering into a fresh programme with the International Monetary Fund (IMF), under the new government’s policy framework.

“I had long chats with the last IMF team that arrived in Sri Lanka, and we will have talks with them later on and develop a programme within the kind of policy framework we agree, as long as that is permitted. The IMF team told me that it is permitted and the country concerned has to develop the programme.

“On that basis, I think there would be a discussion for a new programme; whether it will finalise or not is yet to be decided on the basis of development,” CB Governor 
Prof. W.D. Lakshman said.

He said this at the Annual Economic Outlook Forum 2020, organised by the Ceylon Chamber of Commerce, in Colombo recently.