IMF ready to restart program, team of representatives to arrive in Sri Lanka

Colombo (News1st): According to the Ministry of Finance, an International Monetary Fund team is scheduled to visit Colombo in mid-February to resume program discussions. In a tweet, Finance Minister Mangala Samaraweera said Sri Lanka remains committed to progressive economic reforms. https://twitter.com/MangalaLK/status/1085332001866108928 Christine Lagarde, Managing Director of the International Monetary Fund following the meeting with Minister Mangala Samaraweera and CBSL Governor Indrajit Coomaraswamy in a statement said the discussions were centred on the challenging economic environment and the policy priorities for the country. Lagarde noted they agreed that a strong policy mix, with effective implementation of that agenda, is key to strengthening confidence while putting Sri Lanka on a sustainable, high-quality growth path that would benefit its people. Christine Lagarde added that Sri Lankan officials assured Sri Lanka’s continued commitment to the economic reform agenda under the IMF-supported program.

CONGRATULATIONS!

On the 30th of December, the Sunday Times reported that the government wants flexibility in spending ahead of polls and that the government is to renegotiate certain components of the reform programme with the International Monetary Fund (IMF). The paper reported that the negotiations are to allow for more public spending in the run-up to the next election. The paper quoted the finance minister saying “We will, of course, want a certain amount of flexibility in spending.” What is the agreement that has been reached with IMF this time around? Has the cabinet of ministers approved these agreements? Minister of Power and Renewable Energy and Business Development Ravi Karunanayake noted that the best thing to do is to act the way Sri Lankans want. He said they must not fall into the recipes of the International Monetary Fund and must act according to how the people want them to act, by establishing financial discipline.