INSUBCONTINENT EXCLUSIVE:
The International Monetary Fund (IMF) says that the Sri Lankan government remains committed to program objectives and implementation is
strong and commendable, but more time is needed to assess the implications for Sri Lanka of the external shock as global uncertainty remains
elevated and is contributing to financial market volatility.After concluding the discussions with the Sri Lankan authorities on economic
performance and policies underpinning the Fourth Review under the IMF Extended Fund Facility (EFF) arrangement, the newly appointed Senior
Mission Chief Evan Papageorgiou said that the discussions will continue toward reaching agreement in the near term on parameters and
policies that will maintain the reform momentum under the program during this period of increased global uncertainty.Issuing a statement,
Extended Fund Facility (EFF) continues to deliver commendable outcomes and that the post-crisis growth rebound of 5 percent in 2024 is
the gross official reserves increased to US$6.5 billion at end-March 2025 with sizeable foreign exchange purchases by the central
external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own
economic crisis and that more time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be
continuity and program implementation remains strong
Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path
that against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are
mechanism, will help contribute to revenue gains without resorting to additional tax policy measures, it added, noting that avoiding new tax
exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to
to protect the poor and vulnerable at this uncertain time
It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets
monitoring is warranted to ensure sustained price stability and support macroeconomic stability
added.Papageorgiou expressed that however, the discussions are ongoing, and the authorities are encouraged to continue to make progress on
are continuing with the goal of reaching staff-level agreement in the near term to pave the way for the timely completion of the fourth
Finance Minister Anura Kumara Dissanayake, Prime Minister Dr
Harini Amarasuriya, Labor Minister and Deputy Minister of Economic Development Prof
Anil Jayantha Fernando, Deputy Minister of Finance and Planning Dr
Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr
Nandalal Weerasinghe, Secretary to the Treasury Mahinda Siriwardana, Senior Economic Advisor to the President Duminda Hulangamuwa, and other
organizations, and development partners.
