INSUBCONTINENT EXCLUSIVE:
Speaking at a press briefing in Colombo concluding a visit for the First Review of the program under the EFF arrangement, an IMF delegation
warned that despite early signs of stabilization, full economic recovery is not yet assured and that sustaining the reform momentum is
Katsiaryna Svirydzenka visited Colombo from September 14 to 27, 2023 in order to discuss economic and financial policies to support the
approval of the First Review of the program under the Extended Fund Facility (EFF) arrangement.There, the IMF team had constructive and
productive discussions with the Sri Lankan authorities on economic performance and policies underpinning the first review under the IMF
Extended Fund Facility (EFF) arrangement, the IMF Communications Department said in a statement issued as the conclusion of the visit on
Wednesday (27).At the end of the discussions, Mr
Svirydzenka said in a statement that the people of Sri Lanka have shown remarkable resilience and the authorities have made significant
resilience in the face of enormous challenges
Sri Lanka has made commendable progress in implementing difficult but much-needed reforms
These efforts are bearing fruit as the economy is showing tentative signs of stabilization
Inflation is down from a peak of 70 percent in September 2022 to below 2 percent in September 2023, gross international reserves increased
by $1.5 billion during March-June this year, and shortages of essentials have eased.Despite early signs of stabilization, full economic
recovery is not yet assured
Growth momentum remains subdued, with Q2 real GDP contracting by 3.1 percent on a year-on-year basis and high-frequency economic indicators
continuing to provide mixed signals
recovery and stable and inclusive economic growth
expected to fall short of initial projections by nearly 15 percent by year end
While partially due to economic factors, the onus of fiscal adjustment would fall on public expenditure if there were no efforts to recoup
To increase revenues and signal better governance, it is important to strengthen tax administration, remove tax exemptions, and actively
governance when published
A new welfare benefit payment scheme was enacted with new eligibility criteria that aims to improve targeting, adequacy, and coverage of
To ensure financial stability, steps were taken on conducting bank diagnostics, developing a roadmap for addressing banking system capital
sustainability through the execution of the domestic debt restructuring and advancing discussions with external creditors
As Sri Lanka is restructuring its public debt which is in arrears, Executive Board approval of the first program review requires the
completion of financing assurances reviews
These financing assurances reviews will focus on whether adequate progress has been made with debt restructuring to give confidence that it
continuing to make progress on their plans for revenue mobilization targets, anti-corruption efforts, and other important structural
Nandalal Weerasinghe, State Minister Mr
Shehan Semasinghe, Chief of Staff to the President Mr
Sagala Ratnayaka, Secretary to the Treasury Mr
K M Mahinda Siriwardana, and other senior government and CBSL officials
The IMF team also met with Parliamentarians, representatives from the private sector, civil society organizations, and development
continue its discussions in the context of the First Review with the goal of reaching a staff-level agreement in the near term
