CB Executive Officers call for continuation of engagement with IMF, fiscal reforms

The new administration that will be in place following the resignations of President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe should continue the engagement with the International Monetary Fund (IMF), “which is the primary way to save the economy from this calamity,” the Central Bank Executive Officers’ Union said in a statement.

“Several rounds of technical discussions have been held with the IMF thus far and a staff-level agreement is close to being reached. Also, necessary activities are underway for debt restructuring, which is a prerequisite for an Extended Fund Facility that is to be obtained from the IMF.  Therefore, we strongly believe that any party that comes to power in the future will not hinder this process of reaching an agreement with the IMF, which is the primary way to save the economy from this calamity,” the statement said. “…the IMF has already emphasised that in order to continue the programme, political stability must be established in the country very soon. 

Therefore, we request all the political parties representing Parliament to act promptly within the existing constitutional provisions and ensure that there is no anarchy in the country. Aside from prioritising their party or personal political agendas, they should work in due urgence to create the political and social stability that must prevail in the country,” it added.

Meanwhile, the Central Bank Executive Officers’ Union expressed its fullest support to the people’s movement held on July 09, 2022, against the futile regime, which should be directly responsible for destroying the Sri Lankan economy.

“… and as promised, we emphasise that the failed president and prime minister must bow down to the people’s verdict and vacate their offices.”  The statement further noted that the present crisis is a result of economic mismanagement based on narrow political agendas, ignoring the professional and technical advice of the Central Bank officials. “Due to lack of progressive political vision, weak political leadership and political instability, Sri Lanka has found it difficult to get any kind of financial support from the international community and as a result, the present and future of the entire country is faced with tragic consequences.” The union also highlighted that the Central Bank cannot find sustainable solutions to the existing economic crisis through monetary policy in isolation and for that the government must make the necessary structural changes in the fiscal policy.