President, IMF discuss measures to overcome delays pertaining to third review

• Prez expresses govt’s intention to provide relief to people

By Ajith Siriwardana   

President Anura Kumara Dissanayake and the visiting High-Level International Monetary Fund (IMF) delegation held talks for the second day yesterday where the two parties have discussed the way forward and measures to overcome delays pertaining to the third review.   

The Presidential Media Division (PMD) said President Dissanayake aims to achieve the objectives of the programme in partnership with the IMF, seeking alternative approaches that will alleviate the burden on the citizens.   

The President on Thursday’s meeting with the IMF delegation expressed his government’s intention to provide relief for people while broadly agreeing with the objectives of the IMF programme.   

The Chairman of the NPP Economic Council Prof. Anil Jayantha told the Daily Mirror that the discussions with the IMF was mainly to create mutual understanding with regard to the third review.   

He said dates for the third review is yet to be announced and that the government’s expected reforms to the IMF agreement will be taken up for discussion at the third review.   

Meanwhile, Director of the IMF Communications Department Julie Kozack told a press briefing on Thursday that the dates for the third review under the Extended Fund Facility (EFF) will be announced in due course.   
“Dates for the Third Review under the EFF will be announced in due course and the delegation currently in Sri Lanka will communicate when their visit concludes,” she said.   

Ms. Kozack said that the programme performance is strong, and reform efforts are bearing fruit in terms of reviving economic growth, lowering inflation, boosting reserves and improving revenue mobilization. 

 
“The IMF Executive Board completed the 2024 Article IV Consultation, and the Second Review under the EFF programme with Sri Lanka, providing the country with immediate access to about USD 336 million to support its economic policies and reforms. Programme performance is strong, and reform efforts are bearing fruit in terms of reviving economic growth, lowering inflation, boosting reserves and improving revenue mobilisation. However, as we have said before, important vulnerabilities and uncertainties do remain, and this means that sustaining reform momentum is critical,” she added.   

Commenting on the bondholders, she said Sri Lanka and the international bondholder representatives reached an agreement in principle subject to confirmation of comparability of treatment by Sri Lanka’s Official Creditor Committee on September 18, and this does represent some significant progress in Sri Lanka’s debt restructuring process.