Sri Lanka not out of the woods yet, says IMF

15 September 2024 07:37 pm Views - {{hitsCtrl.values.hits}} 61 Bookmark

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The International Monetary Fund (IMF) has cautioned that while Sri Lanka has made notable progress in its economic recovery, the nation is still vulnerable and must work to protect the hard-earned gains it has achieved so far, the President's Media Division said.

Speaking at an IMF press briefing on September 12, Director of the IMF Communications Department Ms. Julie Kozack, emphasized the importance of sustained reforms and vigilance, especially with the upcoming presidential elections.

Kozack acknowledged the role of the people of Sri Lanka in determining the nation's political future, noting, “It is important to understand that the outcome of the elections is for the people of Sri Lanka to decide. However, achieving the objectives of the IMF program is crucial to help Sri Lanka emerge from one of the most severe crises in its history. As I've already noted, a lot of progress has been made, but the country is not out of the woods yet, and it is important to safeguard those hard won gains.”

She highlighted key milestones the country has achieved under the IMF's Extended Fund Facility (EFF) program. In June, the IMF’s Executive Board concluded the 2024 Article IV Consultation and the Second Review of the EFF, unlocking around USD 336 million in funding. Kozack reported that economic growth is beginning to recover, inflation is subsiding, international reserves are growing, and revenue collection is improving.

Despite this positive progress, Kozack warned that Sri Lanka remains exposed to significant economic risks. “Sustaining the momentum of reforms is essential,” she added.

On the subject of debt restructuring, Kozack responded to questions about private creditors submitting their proposals to the IMF, particularly in relation to Sri Lanka's domestic debt restructuring efforts. She pointed out that key milestones had been achieved with the execution of domestic debt restructuring and agreements with the official creditor committee and EXIM Bank of China.

However, she was careful to note that the IMF does not engage in direct negotiations between Sri Lanka and its creditors, instead offering an overall assessment of debt sustainability.

Kozack reiterated that while the IMF supports Sri Lanka’s reform efforts, the timing of the Third Review will depend on the outcome of the upcoming elections. “Program discussions will resume after the elections, once a new government is in place,” she stated.

Comments - 61

Mohan Sunday, 15 September 2024 07:50 PM

IMF also batting for Ranil :-)

19 50

DK Sunday, 15 September 2024 08:59 PM

Hope it opens the eyes and minds of the delusional lot before they cast their vote.

24 23

Woody Woodpecker Sunday, 15 September 2024 11:35 PM

Might be news to the IMF, but we've BEEN in the woods - okay let's call it a jungle - for as long as anyone can remember.

1 7

sach Monday, 16 September 2024 12:50 AM

There was an IMF program under Ranil between 2016-19. Was it successful? What happened to economy growth? NO. ryt? Ranil cant do that.

3 3

Dilakshan Seneviratne Monday, 16 September 2024 01:04 AM

Hope it opens your eyes as to how and why you support those who abuse power, act anti democratic, promote corruption, nepotism, family bandism etc, trample the vulnerable, lie, waste public money and have scant regard for the country’s well being.

0 3

morehana Monday, 16 September 2024 08:42 AM

That gava-sampatha voted for Gota moving the country down on IMF knees, now going to commit the same sin trusting another aggressor group of carders.

1 4

Rathnavali Sunday, 15 September 2024 08:24 PM

Words of caution. People need to decide what is important right now: 1. Elimination of corruption, or 2. Economic recovery. The current President has initiated Acts to eliminate corruption which people of this country can use against those who misuse power. But we cannot take the risk of testing new policies by new leaders who have never headed governments. That is like jumping in to the deep end of a pool and learning to swim!

48 39

RANIL IS NOT GOD SENT, THE NEW PRESIDENT WILL HAVE A INTELLEGENT TEAM OF ADVISORS. Sunday, 15 September 2024 10:48 PM

WHY HAS RANIL BEEN DUMB ABOUT HOW THE COUNTRY WAS BROUGHT TO ITS KNEES!! WHY IS HIS ELIMINATION OF CORRUPTION STARTS FROM AFTER HE WINS, WHAT ABOUT THE CORRUPTION THAT BROUGHT OUR COUNTRY DOWN AND MAJORITY SUFFERING LIKE NO OTHER TIME IN OUR HISTORY. A NEW PRESIDENT WILL WORK WITH THE IMP AND PUT PRIORITY ON THE ECONOMY. WHAT WAS THE US$366 USED FOR ANY DETAILS AVAILABLE TO THE PUBLIC? RANIL WILL SUCK UP TO RAJAPASKE'SM THEYB ARE RELATED AND WILL NOT RUN THE WHOLE TERM IF ELECTED, HE WILL DEFINITELY DO THE SAME THINK MR DID LEAVE AND GIVE BACK HIS PLACE TO MR, THEN WHAT HAPPENS THE CORRUPTION GOES ON AND NEVER ENDING TILLV THE POOR GO OUT BEGGING ON THE STREETS FOR OUR DAILY BASIC NEEDS??.

1 4

Tissa Fernando Sunday, 15 September 2024 11:06 PM

@Ratnavali, unfortunately Sri Lanka is overflowing with stupid people like you!

3 6

Tissa Fernando Sunday, 15 September 2024 11:08 PM

True, those new guys so far have done nothing other than disruptions and destructions that easily cost the nation USD 200 billion over several decades. How can you expect these guys to turn Sri Lanka into a developed country. They just don't have such mentality , they are just greedy for power.

3 4

Fernando Sunday, 15 September 2024 11:14 PM

Not just "well said" very well said indeed. This is not the time for a regime change. Specially if power goes to jobless gang those who are living on handouts from friends, we will be heading for a disaster.

3 5

sach Monday, 16 September 2024 12:51 AM

Does Ranil have a history of economic growth? But he has a history of Central bank bond scam, visa scam, passport scam, etc.

6 4

Dilakshan Seneviratne Monday, 16 September 2024 01:09 AM

Why not? The people are hell bent on sending this illegitimate, inefficient, undemocratic guy where he belongs. There are enough laws even now, but they are not enforced, as that means dobbing in their cohorts in. If you want to bury your head in the sand, you’re welcome.

1 3

M Fernando Monday, 16 September 2024 01:11 AM

I think you are wrong. He has not enacted anything except make vague promises to enact legislation and appoint committees in the future, presumably only if he is elected. Meanwhile, he seems powerless to actually enact anything today except vote-buying gimmicks like tax lowering etc which according to him, was unthinkable three weeks ago due to IMF restrictions.

2 3

Sujatha Monday, 16 September 2024 08:50 AM

The change inevitable will address all issues better than the present lot appointed by the corrupt elites. New change must be for a moderate group, not former terrorists backed by global elites who openly talk about legalizing prostitution.

2 2

Dilakshan Seneviratne Tuesday, 17 September 2024 05:09 PM

@Ratnavali. This guy brings in so many acts to tick off IMF. But what for, he won’t implement any, allowing crooks to thrive, as those crooks are his friends. Those friends defend him as that’s their mode of survival and sustenance. So, it’s a silly comment.

0 0

Lets choose the leader wisely Sunday, 15 September 2024 08:29 PM

AKD and Sajith wants to increase the public spending and bankrupt the country permamently in the long run. Namal wants to take more loans for commission in a Ponzi scheme.

23 34

Joli seeya pro max Sunday, 15 September 2024 08:55 PM

Instead vote for a leader who promises to increase the salary of every public servant by Rs. 25,000 and and reduce the PAYE TAX. We had enough of joly seeya's BS for too long.

15 34

joshua Sunday, 15 September 2024 08:37 PM

IMF seems to be the mouthpiece of Ranil. Hope the new president will take the discussions with IMF in favour of the people whilst punishing those who bankrupted and looted the country.

33 36

DK Sunday, 15 September 2024 09:02 PM

Better start now to queue up for your essentials, if you think the IMF can be dictated to by a country that is buried in debt.

19 22

joshua Sunday, 15 September 2024 09:02 PM

Those who put thumbs down are ready to swallow whatever bitter pills given by IMF. Unfortunately, The change is coming.

25 29

SLEx Monday, 16 September 2024 06:46 AM

The bitter pills you talk of are actual reforms our country needs to progress. Its the same thing all of these candidates shout on top of stages in different ways. You also must be thinking IMF is like the collateral free development bank loan scheme NPP is talking about. They help people who want to be helped. Not freeloaders. NPP has no idea about the economy or global finances. They give targets but don't provide ways to reach it. Even the targets they give are laughed at by experts in the fields that have nothing against the NPP. Everyone says different things at different TV programs in regards to the economy. No one knows whats actually going to happen after the 21st.

0 1

Dilakshan Seneviratne Monday, 16 September 2024 01:18 AM

IMF is a Western backed agency, and they should be dealt with this in mind. We have to have our own plans and goals to deal with the economy and discuss them with IMF. With this government, the tail wags the dog. NPP will use IMF assistance to SL’s advantage. Those who talk about petrol queues, better go and join them from 22nd. There won’t be anyone queuing behind them, ha ha ha.

3 3

baba mama Monday, 16 September 2024 05:51 AM

Are you a child?

0 0

Sugathaloana Monday, 16 September 2024 08:58 AM

Bitter pills for people since the so called victory in 2009. JVP and Raja pundits always preached the military solution is the only necessary thing for development. If these ideologies continues, whole country become a slave island.

2 1

wickrama Wijayasiri Sunday, 15 September 2024 08:39 PM

This is a clear interference with the elections around the corner. One has to think twice about the motivation behind this statement at this juncture. What does EC has to say about this? This is a pro RW statement in disguise, while attempting to scare the voter. All RW has been promising is to undo his instituted changes to reduce the internal revenue deficit. Taking that fact in to consideration, does this mean, not to vote in RW? Voters need to think, which most voters do not.

19 23

DK Sunday, 15 September 2024 09:10 PM

They are labouring the point by stating the fact, in the hope that people think and refuse to be led like cattle to the voting booths as happened in the last election. We all know what followed!

7 17

NEVER UNDERESTIMATE THE POWER OF PRAYER. Sunday, 15 September 2024 11:00 PM

WICK, YOU ARE SPOT ON IN YOUR COMMENT. AS PER USUAL THE FOX GETTING ALL THIS PUT OUT BY THE PRESIDENT'S MEDIA DIVISON TO SCARE THE VOTERS, BUT THIS SCUMBAG HAS NO GUTS TO GO AFTER THE MAIN THREE THAT BROUGHT THE COUNTRY DOWN TO ITS KNEES AND THE MAJORITY STRUGGLING LIKE NO OTHER TIME. GOTA KNEW HIS DAYS WERE NUMBERED FOR THE PLAN WAS MR RESIGNS, MR'S SON'S WIFE'S UNCLE THE FOX COME IN AND PUPPET DANCING TO THE BEAT OF MR'S MUSIC. ALL THIS UNELECTED PRESIDENT WANTS IS TO PROVE HE IS VOTED IN BY THE PEOPLE AND THEN GO INTO RETIREMENT ENJOYING ALL PERKS.

1 0

No solutions but talk only Sunday, 15 September 2024 11:28 PM

All I can say is that JVP/NPP big heads who appeared to discuss economic policies lately, failed to give fruitful ideas or solutions to the current economic crisis. Economy can be handled by experts in the field but, definitely not by those who are depending on others.

0 1

Nimal 1 Sunday, 15 September 2024 08:43 PM

Generations yet unborn will have to bear the heavy burdens forced upon them by succesive governments, including the present one.

12 22

Cloy Sunday, 15 September 2024 09:23 PM

Its not rocket science or big arithmatic to calculate. This is the time for RW. SP or AKD will take us towards more anarchy. Dilith and Namal have better sense than the so called front runners except RW. In other words, thats what IMF says.

30 11

Philanthropist Sunday, 15 September 2024 09:24 PM

First of all, Sri Lanka has to solve the ethnic problem. Kicking the ball down the road is like burying the head in the sand. In other words, like frogs in a well. The bold step to improve overall economy, welfare, peace and stability is to have a two state in one United country. Look at countries like the UK, USA, INDIA and many EUROPEAN COUNTRIES. What is the inherent fear to go ahead. ?

7 11

Rip Winkle Sunday, 15 September 2024 09:31 PM

Notable progress achieved by wickedly burdening the common man with literally unbearable taxes while a blind eye is turned towards the corruption of almost all ministers and government officials. Well done, IMF!

3 30

Tissa Fernando Sunday, 15 September 2024 11:14 PM

Common man now receive a big salary , a mason bass charges Rs 4500 per day. Common man in developed countries pay a lot of different types of taxes. Their governments are spending part of it to fund the war machine so money goes back to the economy as the weapons are manufactured by their rich class. Here, to serve the Common man there are millions of government workers whose influenced by JVP led unions not to work. So where is the justice to the common man. The same JVP guys are thinking they will win.

0 2

Common sense Monday, 16 September 2024 12:37 AM

When you take out unaffordable loans, your life becomes unbearable when you are asked to pay back. Sri Lankan govt debt - 10b USD in 2010 - 100b USD in 2022

0 0

Guidance by IMP; administration by Lankans Monday, 16 September 2024 08:27 AM

IMF has given a broad road map to curb corruption. Recently Customs implemented them and made big progress. But if you expect IMF to occupy administrative seat, that will never happen. Everyone will holler "Colonial masters have come back." Do you want that to happen? It is for us locals to run the country on principles provided by IMF. Let us see how our Govt. officers conduct their job to serve the nation. I mean Customs, IRS, Police, Excise even gateman at Railway crossings. Let us do our jobs for the benefit of the nation.

0 0

Chandra Liyanage Sunday, 15 September 2024 09:40 PM

If a person or institution propounds professional opinions or makes statements grounded on economic reality, for the NPP guys, it is in support of Hon Ranil Wickramasinghe. Dear voters, please understand the mentality of the NPP people. So narrow-minded. Just imagine the plight of our country and people should these parochial people come to power by mistake.

28 18

wickrama Wijayasiri Monday, 16 September 2024 12:47 AM

Fools never learn from past mistakes. They keep on repeating expecting a different outcome. It is not that Sri Lankans do not pay taxes with a tax return accustomed to these foreign experts. We all pay taxes when we consume, including the air we breath. It is the unfairness of the taxes which the have nots are complaining about in addition to corruption by the people who hold the ladle. Perhaps it is time that we politely request China to take away the Air-port, The Harbour, and the Nelum Kanuwa as we have no use for them and we cannot pay anymore. Dubai did similar and they seem to be doing fine.

0 0

sach Monday, 16 September 2024 12:52 AM

It was RW who dragged the country to this plight and not NPP.

1 2

M Fernando Monday, 16 September 2024 06:29 AM

Meaning we should leave the unelected in power indefinitely I suppose. And what of the suddenly malleable IMF restrictions that were rock-hard only a couple of weeks ago ? What of the sudden eagerness to create "commissions" for one thing or another? And minimum-wage hikes when none was possible before Could these not have been done in the past two years? How are these things suddenly possible only in the face of an election? We have had "mistakes" in power, back-to-back since the 70's who are responsible for our present predicament, including the current one who was around for all that time in one capacity or another and who is also culpable. It's time to correct it.

0 0

S.K Kumara Sunday, 15 September 2024 09:50 PM

Complete interference and derogatory statements at a critical time. IMF should be kicked out, we can handle our own economy without the help of the IMF. Past 76 years we have done nothing but begging and its time for self sustaining and rid of the IMF.

0 1

Cherath Sunday, 15 September 2024 10:47 PM

If you want to hit the nail on the head without beating about the bush, the one and only way to get out of the financial mess is to start putting action into words in kickstarting the economic vibrancy - by attracting inward investments, FDI, low or interest free 10> yr loans, aids and increasing remittances, boosting tourism etc. No amount of deferments, extensions, restructuring of existing loans can resolve the problem at hand although they may provide breathing space to launch aforesaid steps. 24 hour supervised toilets at 5km intervals on all major roads as well as a toilet per every two streets in towns and cities is the first step to attract tourists and spread the missing good word on hygiene to the world. At the moment, there are only 3 sets of toilets even in Kandy, the 2nd capital of SL.

0 0

Foose Sunday, 15 September 2024 11:03 PM

We don't IMfF we need AKD to flower things up

0 1

Kappan Kings Sunday, 15 September 2024 11:30 PM

Sayings of Jolly seeya and his golayas

0 0

Choose wisely Sunday, 15 September 2024 11:40 PM

AKD and Sajith are power hungry individuals who have gone crazy with the dream of becoming the president of the country. It clearly shows that both are suffering from inferiority complex disorder. Just one word from Ranil is worth a million, than all the silly talks given by the above two.

1 0

Stability takes time Sunday, 15 September 2024 11:52 PM

Absolutely not out of the woods yet. It is evident. Financial catastrophes take time to recover.

0 1

sachin Monday, 16 September 2024 12:53 AM

So Ranil has been lying all this time about recovery?

1 1

Mani Ratnam Monday, 16 September 2024 01:53 AM

The fundamental flaw in Srilankan politics since independence. The first thing they did immeadiately after independence is to defranchise the so called Indian Tamils. Even though they contributed for nearly half of the then GDP. Galoya (Pattipalai Aaru_ changed to Gal Oya)project was commissioned. People, mainly Tamils were removed to pave way for others and change demography. Followed by Sinhala only in 1956. Then came 1958 communal riots..followed by more riots in 1961,1971,1981. Then came the state sponcered communal riots in 77 culminated by the 83 riots. Standardisation and the 77 riots forced the Tamils ( the youth) to loose confidence in their own leaders ( Tamil politicians) and paved way for the militant group /groups. 83 riots fueled the growth of the militant group. By this time India was not happy with JR so brought in IPKF. downfall of SriLanka from the best performing ecconomy in southeast asia at independence to worst. Solve this.

0 1

FredSnR Monday, 16 September 2024 10:46 AM

Curb budget deficits and money printing, that gives politicians power, leads to corruption, and inflation which benefits some destroys others. Bring back English as a medium of instruction (in an effective way), need to create a national identity, it is one way to do it, easier said than done in a country riddled by caste race creed and corruption and unfairness, but that should be the approach. There is an election soon, vote wisely.

0 1

P Kunchithapathan Monday, 16 September 2024 02:51 AM

Is the IMF issuing a dire warning to Ranil Wickremesinghe's opposition? It is also a reflection of the IMF’s questionable judgment to have extended assistance to Sri Lanka on 17 occasions, despite the repeated mismanagement and failures of its successive governments. Unfortunately, Ranil Wickremesinghe cannot absolve himself of responsibility for these long-standing errors and transgressions. He is, after all, complicit in these failures. In the framework of the rule of law, those who protect and enable criminals and thieves are equally culpable. The consequences of these betrayals and blunders are inevitable, as the majority of the population is demanding lasting change, free from the grip of such corrupt individuals. And at the forefront of those culpable is none other than Ranil Wickremesinghe.

0 1

Kevin Monday, 16 September 2024 03:27 AM

So far there was no real progress. Credit rating is still bad (realistic default rating). This is not sustainable. Real change is needed. And change is coming like it or not. Don't forget 3 more elections are in the pipeline. Best approach voters should take for stability is to allow change of government and not resist it. That's the only way to keep things stable throughout the 4 elections.

0 2

Jude Monday, 16 September 2024 04:10 AM

SL never entered the woods to get out of the woods!! Huh.

0 1

Jude Monday, 16 September 2024 04:13 AM

IMF helping SL because big chunk of money owed to foreign pension funds. That's means it's some people's retirement money. That's the very reason IMF helping SL.

0 0

FredSnR Monday, 16 September 2024 04:40 AM

The IMF can't solve Sri Lanka's problems, only the people of Sri Lanka can, by working hard and paying back these loans and by giving everyone a stake in the society, a reason to live. And the opportunity to grow. .Vote wisely, it could be your last chance, to revive a nation, riddled with corruption, teetering on the brink of bankruptcy. A country that has forgotten how the other man lives.

0 1

Ram P Monday, 16 September 2024 04:59 AM

Sri Lanka not out of the woods yet, says IMF Yes we know it. That is why we need honest people to hold positions. Ranil has 90 plus advisors and some without a subject. Some given subjects that they have no experience. This is to keep the friends and close associates going. Ranil is also accused of the CBSL robbery. If such a person continues we will never be out of the woods. We must elect a honest person to lead our country, certainly not Ranil

0 1

Nihal S Monday, 16 September 2024 06:20 AM

Is IMF batting for Ranil or id this Ranil selling IMF for his favour? Present Govt just increased Govt sector salaries by Rs25,000 while reducing taxes. This will not work, and I am sure this is the opposite of what is expected by IMF in path to recovery. Why the IMF and our Central Bank Governor are silent to on those political decisions detrimental to the recovery?

0 1

V I Lenin Monday, 16 September 2024 06:46 AM

@ Joshua - Please talk with some sense. In 2022, when people were facing acute shortages of essential goods and services, 13 hours power cuts, ships docked in ports unable to unload the cargo due to lack of FOREX to open LCs, and people dying in queues, it was this great man Hon Ranil Wickramasinghe who courageously took up the challenge of bringing economic stability withing two years. Why didn't your NPP had the courage to assume the responsibility at that time and deliver? Look at Bangladesh, it is still in anarchy. The IMF programme was a big assistance to stabalise the economy. During the Yahapalana regime, one of the JVP guys headed the unit to investigate corruption. Can you please tell us how many corrupt politicians were brought to books? The JVP/NPP is a group good at talking. They can't even manage a small sole trader business but good at taking away wealth from hard working entrepreneurs. 95% of Sri Lankans know what happened in the 70s and the 88-89 period.

0 1

sachin Monday, 16 September 2024 10:54 PM

It was not Ranil. GR had already taken steps to tackle shortages. And we have simply stopped paying loans.

0 1

Sam Monday, 16 September 2024 07:38 AM

Please stop your rubbish no party is going out of IMF program. You shouldn't make any comments during an election time. Thanks

0 1

Samy Selvarajah Monday, 16 September 2024 02:02 PM

Once Ranil term ends with his own corrupted team on the 21st Sep:, the country will begin to recover under the new President Anura. God bless you and your new team Anura.

0 1

Garvin Karunaratne Wednesday, 18 September 2024 02:06 AM

It was the IMF that made Sri Lanka a debt ridden country. Till President Jayawardena bowed to he IMF and implemented the Structural Adjustment Programme in mid 1977, Sri Lanka was not a dollar in debt. It was the IMF that enticed our Jayawardena by offering a grace period of a decade where he need not pay the interest and repayment instalment. That was ho the IMF bribed Jayawardena and Ronnie. Structural Adjustment was the method by which all Third World countries were ruined by the IMF. Garvin Karunaratne Detailed in my books:# How the IMF Ruined Sri Lanka, Godages, 2006 How the IMF Sabotaged Third World Development, Godages 2018 How the IMF's Structural Adjustment Destroyed Sri Lanka, Godages 2021

0 0

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