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

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

Written by Staff Writer

23 Oct, 2018 | 8:34 pm

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.

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