IMF calls for a strong 2019 budget for Sri Lanka to withstand large debt repayments

COLOMBO (News 1st) - With consideration to Sri Lanka's medium-term challenges to accelerate socio-economic growth, the International Monetary Fund expects a strong 2019 budget. Quoting IMF’s Mission Chief for Sri Lanka Manuela Goretti, Daily FT reports that “Sri Lanka would need a strong 2019 Budget, aiming at further fiscal consolidation, to secure debt on a sustainable downward path and support investor confidence as large debt repayments are coming due.” She said given Sri Lanka’s low revenue base, the authorities should continue to advance revenue-based fiscal consolidation. Goretti also said for Sri Lanka to unlock its growth potential as well as strengthen the resilience of the economy to shock, the country must persist with a multi-pronged reforms effort including revenue-based fiscal consolidation, improving the business climate and regional integration. The recommendation of a strong policy mix is being reiterated by IMF’s Mission Chief, who noted that the country’s macroeconomic performance has been mixed in the first half of 2018.