Ceylon Chamber emphasises urgency for economic growth after IMF bailout milestone

While recognising the completion of the first review of the IMF bailout programme and securing the second tranche of US$ 337 million, the Ceylon Chamber of Commerce yesterday highlighted the urgent need for economic growth.
To achieve growth, the business chamber advocated prioritising sectors such as tourism, ports and logistics, renewable energy, and exports and emphasised the importance of digitalisation of revenue authorities and other government agencies, as well as the introduction of advanced technology in the agriculture sector.
“Despite the advancements made, unchanged business sentiment since late 2023 reflects subdued confidence primarily due to persistent challenges, underscoring the imperative for continual reform, particularly in fostering growth. 

In light of recent increases in taxation, which have contributed to inflation and impacted people’s purchasing power, the Chamber underscores the necessity of economic growth to improve these aspects,” Ceylon Chamber said in a statement.

The chamber also highlighted the need to continue the reform momentum.

“This milestone, granting Sri Lanka access to approximately US$ 337 million, underscores the nation’s commitment to fulfilling key performance criteria and benchmarks. Notably, this includes the release of the Governance Diagnostic Report and initiating debt restructuring agreements with key international creditors. 
These steps signify Sri Lanka’s robust commitment to reform, particularly in revenue-based fiscal consolidation, bank recapitalisation, and enhanced financial supervision, aligning with efforts to restore debt sustainability, rebuild reserves, reduce inflation, and ensure financial stability. The government’s dedication to improving governance and safeguarding the vulnerable sectors of society is also commendable,” the statement noted.