Mission chief of IMF, addressing a media briefing, commented on why Sri Lanka opted for an Extended Fund Facility (EFF) instead of the usual standby agreement.

IMF Mission Chief, Todd Schneider stated that the government agrees that many problems Sri Lanka has to deal in terms of Macroeconomic Policies are not quick fixes.

He added that it takes time to achieve EFF programmes since they take longer than a standby arrangement and a deeper structure component which lasts for about three years.as

He went on to note that Sri Lanka has a deficit of close to 6.9% in 2015 – as they look forward for a potential widening of by 2016 if actions are not taken. A short term reduce to the overall fiscal deficit has to occur in order to maintain stability and regain investor confidence.

Explaining further, he added that the process takes an year but the government has to put the fiscal trajectory on consolidation.

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