By: Staff Writer
Colombo (LNW): Central bank governor Nandalal Weerasinghe dismissed concerns over Sri Lanka purportedly failing to meet a number of commitments made to the International Monetary Fund (IMF) ahead of a September review, arguing that the authorities have made “good progress” in meeting quantitative targets.
Performance of the EFF arrangement will be monitored in terms of a comprehensive mechanism that comprises Quantitative Performance Criteria (QPCs), Continuous Performance Criteria (CPC) related to external arrears and Article VIII obligations, Indicative Targets (ITs), and the monetary policy consultation clause.
The first review of the IMF programme is set to take place from September 14 to 27 and will consider the programme’s performance until end-June.
If the IMF is satisfied with the progress of the programme, the executive board will approve a disbursement of roughly 338 million US dollars as the next tranche of the 2.9 billion-dollar EFF.
Responding to a question at a press conference on Thursday August 24, Weerasinghe said reports tracking the progress or lack thereof of Sri Lanka meeting its commitments to the IMF in exchange for a 2.9 billion-dollar extended fund facility (EFF) were largely based on inaccurate information.
Colombo-based private think tank Verité Research said on August 21 that Sri Lanka had verifiably met 35 of the trackable programme commitments of the IMF programme as of the end of July 2023, but had failed seven, according to the institute’s ‘IMF Tracker‘ online tool.
Though there will be an IMF mission arriving in Sri Lanka in September to assess the progress of the programme, it is not the deadline for all targets, according to the central bank chief.
“Structural reforms such as the recently passed central bank act are also being met, he said.
“So probably this assessment of this institution should be based on that kind of analysis. I’m sure knowledgeable media people will not be misled by that kind of statement.
With regard to domestic debt restructuring, Weerasinghe said both the government and central bank will make note of developments.
“There could be delays in implementation, but that doesn’t mean the direction we’re moving in has been reversed. [It may be] at a slower pace but still the commitment is to meet all the commitments by the completion of the first review,” he said.
The first review of the IMF programme is set to take place from September 14 to 27 and will consider the programme’s performance until end-June. If the IMF is satisfied with the progress of the programme, the executive board will approve a disbursement of roughly 338 million US dollars as the next tranche of the 2.9 billion-dollar EFF.
