Will reach staff level agreement with IMF today: President

• President says government expects the debt restructuring process could be successfully concluded by the end of December this year
• Government will not allow racism or religious extremism to be used for political ends

By Ajith Siriwardana and Yohan Perera 

The government will reach a staff level agreement with the International Monetary Fund (IMF) today with regard to the IMF 3rd review of the Extended Fund Facility (EFF), President Anura Kumara Dissanayake said yesterday.   

Making the government’s policy statement in Parliament he said the government has come to a common agreement on bi-lateral debt as agreed by the previous government and that the government is ready to come to agreements with each country separately.   

“The previous government had come to an agreement on bi-lateral loans when we took over. The government revealed two days prior to the Presidential election that negotiations on ISB loans had concluded. So, there was no opportunity for any discussion on the debt restructuring process under our government. If we initiate discussions on debt restructuring again, it will take a long time. We cannot move forward without completing the debt restructuring process. Therefore, it is pointless debating whether the proposals on debt restructuring is good or bad and beneficial or not,” he said.   

He said the government expects that the debt restructuring process could be successfully concluded by the end of December this year.   

The President said the IMF programme alone will not find solutions to the deep crisis faced by the economy but it will only be sufficient to manage the economic crisis.   

“We must find new economic strategies to overcome the economic crisis. The economic strategies comprise of three aspects which include drastic increase and expansion of production of good and services. The second is to open up economic opportunities for the people. The third aspect is to ensure equal distribution of economic benefits to the people,” he said.   

He said the government will not allow racism or religious extremism to be used for political ends. “This election has shown that people had come to a common purpose despite language and religious differences. A situation has arisen for us to work towards national harmony which people were yearning for years. We can hold different political ideologies. I will not allow racial politics in our country again,” he said.   

He said the main aspiration of the mandate is to change the bad political culture. “I have represented this Parliament for 24 years and I have experienced practically how this Parliament deteriorated and people lost their trust and respect. I do not think that kind of Parliament is suitable to control people’s financial power and enact laws,” he said.   

The President said the government will establish an efficient state service for the benefit of the people and assured to ensure a democratic and free country where everyone can live without fear. “We will restore law and order in the country. Law and order is ensured not only by enacting laws in Parliament. We need to implement laws properly. People have lost trust in law and order. We all including myself as must be bound by law. No one is above the law,” he said.   

He assured to investigate into controversial crimes and mete out justice to the victims and punish the criminals.  

The President said he expected that every MP would support to make the new economic and social transformation a success.