CB says ready to engage with IMF

The Central Bank this week expressed its readiness to cooperate with the IMF following the government’s policy decision to engage with the Fund to resolve the on-going economic crisis. 

“With the government indicating that it is seeking a closer engagement with the IMF, the CBSL stands ready to cooperate in such an engagement,” a Central Bank statement issued last Saturday said following the release of IMF Article IV Staff Report on Sri Lanka.

The IMF Executive Director to Sri Lanka Surjit S Bhalla and Alternative Director Alternate Executive Director Dr. Chandranath Amarasekara have requested the IMF to consider solutions for Sri Lanka’s economic crisis within the country’s socio-economic context.

“We request the Fund to support the authorities’ efforts in looking beyond standard prescriptions for emerging market economies, recommendations that may not be in line withthe socio-economic traditions and expectations of economies like Sri Lanka,” they requested.

Meanwhile, it was noted that Central Bank along with Ministry of Finance has already implemented several policy adjustments to address the on-goring crisis.

“At the same time, several policy adjustments have already been made by the MoF and the CBSL.
These include monetary policy tightening since August 2021, allowing exchange rate flexibility,
removing restrictions on foreign exchange market transactions, implementing envisaged revenue
enhancing measures, and allowing market-based price adjustments to key commodities,” the Central Bank statement said.