IMF officials conclude Sri Lanka visit; acknowledge positive developments in macroeconomic situation

• A team of International Monetary Fund, led by Peter Breuer and Masahiro Nozaki, acknowledged the positive developments in Sri Lanka's macroeconomic situation, attributing them to strong policy efforts. In a statement, the IMF mission said that Inflation has shown signs of moderation, while the exchange rate has stabilized, and the Central Bank has been successful in rebuilding forex reserves buffers. At the same time, the statement added that the overall economic and policy environment remains challenging.
• The authorities' commitment to meeting the key targets under the IMF-supported program was appreciated by the mission. The program's performance will be formally assessed during the first review of the 3 billion USD Extended Fund Facility arrangement, scheduled for September 2023. The mission emphasized the importance of additional fiscal efforts for successful revenue mobilization.
• Debt restructuring was also a topic of discussion, with ongoing negotiations taking place with both foreign and domestic creditors. The mission stressed the significance of achieving timely restructuring agreements that align with the program targets to restore debt sustainability.
• During their visit, the IMF team engaged with various stakeholders, including President Ranil Wickremesinghe, Governor of the Central Bank Dr. Nandalal Weerasinghe, senior government officials, opposition parties, civil society organizations, think tanks, trade unions, the private sector, and development partners. The mission stressed that Continued reform momentum and the timely implementation of program commitments are essential for Sri Lanka to overcome the current economic crisis.
• Earlier in March this year, IMF had approved a 3 billion dollar bridge financing package in the form of an extended fund facility that would be available to Sri Lanka over multiple tranches over 4 years. The IMF mission led by Messrs.

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Published date : 25 May 2023 07:55PM