By: Staff Writer
March 10, Colombo (LNW): The International Monetary Fund (IMF) has reaffirmed its commitment to supporting Sri Lanka’s economic agenda while emphasizing the importance of adhering to reform benchmarks and conditions.
While the IMF Managing Director Kristalina Georgieva praised the government’s progress in economic reforms, concerns remain over potential risks if agreed-upon targets are not met.
Failure to comply with the IMF’s conditions could jeopardize future financial assistance, impacting Sri Lanka’s long-term economic stability. The government must balance its reform agenda with public expectations while ensuring that critical IMF conditions, such as debt restructuring and governance improvements, are not violated.
IMF Managing Director Kristalina Georgieva commended Sri Lanka’s efforts in implementing key reforms and reaffirmed the IMF’s continued support. She stressed the need to strengthen macroeconomic fundamentals within a robust governance framework, especially in light of slowing global growth, rising debt levels, and increasing uncertainties in the global economy.
On Friday, the IMF congratulated President Anura Kumara Dissanayake on his progressive economic policies and reiterated its commitment to assisting Sri Lanka. During a virtual meeting with President Dissanayake,
Georgieva acknowledged Sri Lanka’s progress in achieving macroeconomic stability and discussed future measures needed to address current and emerging economic challenges.
The discussion also covered the ongoing partnership between Sri Lanka and the IMF as the country reached the halfway mark of its 48-month Extended Fund Facility (EFF) program, which commenced in March 2023.
Georgieva praised the government’s success in maintaining stability, completing the third review of the EFF, and making significant progress in the bond exchange and debt restructuring processes.
However, she emphasized the importance of maintaining the reform agenda to ensure Sri Lanka’s path toward sustainable and equitable growth. She noted that despite the achievements, significant challenges remain due to the rapid evolution of global economic conditions, technological advancements, and geopolitical shifts.
Reiterating the IMF’s role as a reliable partner, Georgieva assured Sri Lanka of continued support in fostering inclusive growth, alleviating poverty, and improving the quality of life for its people.
President Dissanayake highlighted the government’s achievements in implementing economic reforms, stabilizing the macroeconomic environment, protecting vulnerable populations, and improving governance.
He expressed gratitude for the IMF’s support, particularly in the debt restructuring process, and underscored the importance of continued cooperation to navigate ongoing economic uncertainties.
He reaffirmed his commitment to advancing the IMF program while ensuring that reform targets align with the aspirations of the Sri Lankan people. He emphasized the government’s focus on social welfare expenditures, enhancing governance in state-owned enterprises, and implementing cost-recovery pricing mechanisms, including in the energy sector.
Additionally, President Dissanayake highlighted the significance of attracting foreign direct investment and securing multilateral support to reduce debt vulnerabilities while fostering sustainable growth. He reassured the IMF of the government’s commitment to completing the remaining EFF reviews successfully.Both the President and the IMF Managing Director agreed on the necessity of ongoing collaboration and dialogue to achieve long-term economic stability. The meeting concluded with a shared commitment to ensuring Sri Lanka’s sustained economic progress and prosperity.
