High level SL delegation due for talks with IMF this month

• Finance Ministry Secretary K.M.M Siriwardena, Central Bank Governor Dr. Nandalal Weerasinghe and, the two senior advisors to the President on economic affairs Duminda Hulangamuwa and Prof. Anil Fernando will visit IMF Headquarters 

By Ajith Siriwardana

Claiming that the government will not discuss any structural changes to the IMF agreement with the IMF delegation that arrives in the country today, Cabinet Spokesman Minister Vijitha Herath said yesterday that structural and principal changes to the IMF agreement will be discussed at a meeting scheduled with a Sri Lankan delegation at IMF Headquarters at the end of this month.   

He told the inaugural Cabinet briefing of the new government that Finance Ministry Secretary K.M.M Siriwardena, Central Bank Governor Dr. Nandalal Weerasinghe and, the two senior advisors to the President on economic affairs and finance Duminda Hulangamuwa and Prof. Anil Fernando will visit IMF Headquarters in New York at the end of this month, where they will discuss structural and core changes to the agreement.  

It is expected that the NPP government will not look at moving away from the path already laid by the IMF but may look at revisiting some of its terms and conditions. In an exclusive interview with President Anura Kumara Dissanayake during the presidential election campaign in August, Dissanayake had told the Daily Mirror that he will continue with the IMF agreement as the previous government had already entered into a 4 year agreement but his government would revisit the high taxes imposed on the citizens.  Meanwhile it is learnt that the IMF delegation that is arriving in Sri Lanka today is purely here on a courtesy call and they will discuss only conceptual matters regarding the IMF agreement with the President.   

“The IMF team had sought a meeting with the President and they are arriving today on a courtesy call. Nothing regarding the IMF agreement was discussed during Monday’s cabinet meeting. The IMF agreement needs to be reviewed. We will not discuss any structural or core changes to the agreement. We will have a preliminary discussion as to how the IMF agreement could move forward with the new President,” he said.   

Responding to a question regarding the reports of previous government reaching agreement in principle with the ad hoc group of bond holders on restructuring of US $ 14. 2 billion of sovereign bonds, the Minister said the news was false and that no such final agreement had been reached at.   “They had not reached at a final agreement. They had only come to the last stage of the discussions.