By: Isuru Parakrama

Colombo (LNW): The Executive Board of the International Monetary Fund (IMF) today (20) has approved a 48-month extended arrangement under the proposed Extended Fund Facility (EFF), with an amount of about US$3 billion, to address Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential, the IMF said in a statement.

The IMF Executive Board’s decision, accordingly, will enable an immediate disbursement of about US$ 333 million, and catalyse financial support from other development partners, the statement added.

Below is the statement by IMF Managing Director Kristalina Georgieva on the approved EFF:

“Sri Lanka has been facing tremendous economic and social challenges with a severe recession amid high inflation, depleted reserves, an unsustainable public debt, and heightened financial sector vulnerabilities. Institutions and governance frameworks require deep reforms. For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported programme with strong ownership for the reforms is critical.

“Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability while protecting the poor and vulnerable. In this regard, the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor. For the fiscal adjustments to be successful, sustained fiscal institutional reforms on tax administration, public financial and expenditure management, and energy pricing are critical.

“Having obtained specific and credible financing assurances from major official bilateral creditors, it is now important for the authorities and creditors make swift progress towards restoring debt sustainability consistent with the IMF-supported programme. The authorities’ commitments to transparently achieve a debt resolution, consistent with the program parameters and equitable burden sharing among creditors in a timely fashion, are welcome.

“Sri Lanka should stay committed to the multi-pronged disinflation strategy to safeguard the credibility of its inflation targeting regime. As the market regains confidence, the authorities’ recent introduction of greater exchange rate flexibility will help to rebuild the reserve buffer.

“Maintaining a sound and adequately capitalised banking system is important. Implementing a bank recapitalisation plan and strengthening financial supervision and crisis management framework are crucial to ensure financial sector stability.

“The ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation. A more comprehensive anti-corruption reform agenda should be guided by the ongoing IMF governance diagnostic mission that conducts an assessment of Sri Lanka’s anti-corruption and governance framework. The authorities should step up growth-enhancing structural reforms with technical assistance support from development partners.”

By: Isuru Parakrama

Colombo (LNW): The Executive Board of the International Monetary Fund (IMF) has approved Sri Lanka’s programme under the Extended Fund Facility (EFF), allowing the country to access financing of up to US$ 7 billion from the IMF, international financial institutions and multilateral organisations.

Marking the historic milestone, the government of Sri Lanka seeks to restore macroeconomic stability and achieve debt sustainability.

Commending the IMF approval President Ranil Wickremesinghe delivered the following statement:

“In the 75 years of Sri Lanka’s independence, there has never been a more critical period for our economic future. Our official creditors have declared their support following continuous and positive engagements over the last few months, and we are pleased that the IMF Executive Board approved our program, enabling Sri Lanka to access up to US$ 7 billion in funding from the IMF and IFIs. From the very start, we committed to full transparency in all our discussions with financial institutions and with our creditors. I express my gratitude to the IMF and our international partners for their support as we look to get the economy back on track for the long term through prudent fiscal management and our ambitious reform agenda.

Since taking office last July, it has been my priority to stabilise Sri Lanka’s economy and achieve sustainable levels of debt. To do so, we have taken some tough decisions, but we did so with a commitment to widening our social safety nets, protecting the vulnerable, rooting out corruption and ensuring we can grow an inclusive and internationally attractive economy. The IMF programme is critical to achieving this vision for our country, and we are committed to successfully completing the IMF programme and achieving debt sustainability. We will continue to engage with all our creditors, and I encourage both our bilateral and commercial creditors to strengthen and foster coordination in the context of our forthcoming engagement. The IMF program will also be imperative to improving Sri Lanka’s standing in and access to international capital markets, and it will demonstrate that Sri Lanka is once again a country attractive to talent, investors and tourists.”

Colombo (LNW): Our earlier report on certain bad experiences by the Visa applicants were not limited to VFS Office for Japanese Visa. We just reported a first hand experience encountered at the Japanese Visa Centre. Simultaneously there were similar stories of bad experiences at other offices too. We simply do not want our own people looking down on our own Sri Lankans ridiculing and harassing them sarcastically.

However to be fair by the VFS Japanese Centre. We experienced a drastic change of attitudes by the staff there when the same party went there to collect their Passports after processing the Visa. Starting from the security, Reception and the Lady who was manning the passport Collection counter was extremely courteous and well mannered. Even the other counters who accepting Visa applications were  observed,  working with a smile and politeness. This is exactly what we expect from a servicing agency. 

Gone are the rudeness, arrogance and sarcasm, we were quite shocked to experience the contrast attitude with in a weeks time. Maybe overall staff may have got a good shelling and a proper training & instructions to serve in the service industry.

We too are quite happy to know that there are proper Visa centres operating in our island with a human touch so any Sri Lankan could walk in there to obtain their Visa requirements. 

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