January 13, Colombo (LNW): Sri Lanka is likely to press for changes to the performance benchmarks agreed with the International Monetary Fund under its ongoing financial support programme, Central Bank Governor Dr Nandalal Weerasinghe said.
In remarks made during a televised discussion last night (12), the Governor indicated that the matter would be raised during talks with an IMF delegation expected to arrive in the country later this month. The visiting team is due to conduct the fifth assessment of Sri Lanka’s 48-month Extended Fund Facility arrangement.
Dr Weerasinghe pointed out that major unforeseen shocks have altered the country’s economic outlook since the targets were finalised. He cited the widespread damage caused by Cyclone Ditwah, which disrupted infrastructure, economic activity and livelihoods across several regions, as a key factor making a reassessment unavoidable.
He added that fiscal plans, including the national budget prepared prior to the cyclone, no longer fully reflect current realities. These developments, he said, would need to be taken into account during discussions with the IMF before reaffirming or adjusting the agreed benchmarks under the programme.
The Governor stressed that while Sri Lanka remains committed to reform and recovery, flexibility is essential when circumstances change dramatically, particularly in the face of natural disasters that place additional strain on public finances and growth prospects.
