By: Staff Writer
March 09, Colombo (LNW): Sri Lanka has reiterated its commitment to completing the remaining reviews under the Extended Fund Facility (EFF) of the International Monetary Fund (IMF). This assurance was provided by President Anura Kumara Dissanayake during a virtual meeting with IMF Managing Director Kristalina Georgieva on March 7, according to the President’s Media Division (PMD).
The discussion centered on strengthening Sri Lanka’s partnership with the IMF as the nation reaches the midpoint of its 48-month EFF program, which began in March 2023. President Dissanayake expressed deep gratitude for the IMF’s support in helping Sri Lanka recover from the severe economic crisis of 2022. He highlighted the substantial progress the country has made in economic reforms, macroeconomic stability, social protection, and governance improvements.
The President also acknowledged the IMF’s assistance in Sri Lanka’s debt restructuring efforts, particularly appreciating the contributions of its senior management and staff. He stressed the importance of sustained collaboration to ensure Sri Lanka’s economic resilience amid global uncertainties.
In response, Kristalina Georgieva congratulated Sri Lanka on achieving macroeconomic stability, successfully completing the third EFF review, and making significant strides in debt restructuring, including the bond exchange.
She praised the nation’s commitment to crucial reforms and reaffirmed the IMF’s continued support for Sri Lanka’s economic agenda. Ms. Georgieva also emphasized the necessity of strong governance frameworks to maintain macroeconomic fundamentals, especially in light of global financial challenges such as slow growth and increasing debt levels.
President Dissanayake reassured the IMF that Sri Lanka remains dedicated to implementing the program while ensuring that its goals align with the aspirations of the people. He underscored the government’s priority of strengthening social welfare programs to support the underprivileged.
Additionally, he reiterated plans to enhance the efficiency of state-owned enterprises through governance improvements and cost-recovery pricing mechanisms, particularly in the energy sector.
The President highlighted the importance of attracting foreign direct investment and securing support from multilateral institutions to mitigate debt risks and promote long-term, inclusive economic growth. He reaffirmed the government’s unwavering commitment to successfully completing the remaining EFF reviews and adhering to the reform agenda.
Looking ahead, Ms. Georgieva emphasized the necessity of persisting with reforms to ensure Sri Lanka’s transition to sustainable and equitable growth. She acknowledged the challenges of achieving lasting economic recovery, particularly given rapid technological and geopolitical changes worldwide.
The IMF Managing Director reiterated the institution’s role as a steadfast partner in Sri Lanka’s economic journey. She reaffirmed the IMF’s support in fostering inclusive growth, alleviating poverty, and improving living standards.
Both President Dissanayake and Ms. Georgieva agreed on the need for ongoing cooperation and dialogue to secure Sri Lanka’s economic stability and prosperity. The meeting concluded with a mutual commitment to working towards a resilient and sustainable future for the country.
