IMF approves $252 million disbursement to Sri Lanka

COLOMBO (News 1st) - The International Monetary Fund (IMF) completed its fourth review of Sri Lanka,  approving a $252 million disbursements. The IMF says, Sri Lanka continues to make important progress under the programme. According to the IMF, major achievements include the launch of the new Inland Revenue, Energy Pricing Reforms and flexible inflation targeting, critical to build resilience and boost sustainable growth. The IMF further calls for:

• Further progress with revenue-based fiscal consolidation,  a medium-term debt management strategy to help place debt firmly on downward path.
• Implement an automatic pricing formula for electricity and a restructuring plan for Sri Lankan Airlines.
• Further strengthen governance and transparency of state-owned enterprises.
• Mitigate the impact of the reforms on the vulnerable by strengthening social safety nets.
• Continue the management of monetary policy prudently in the face of price shocks and market volatility.
• Sustain efforts to build up international reserves with exchange rate flexibility as the first line of defense in response to volatile global capital flows.
• Upgrading CBSL law will be instrumental for the new inflation targeting framework.
• Monitor closely credit growth in the real estate sector.
• Step up implementation of structural reforms, with a focus on fostering gradual trade liberalisation and the investment climate, developing a natural disaster risk financing framework, and promoting gender equality in the labor market together with well-targeted social safety nets.