IMF respects democratic process during elections
The International Monetary Fund says sustaining the reform momentum is critical to safeguarding the hard-earned gain upto now, at a time where Sri Lanka is facing considerable uncertainties associated with the upcoming presidential elections and ongoing debt restructuring.
The IMF executive board completed the 2024 Article IV Consultation and Second Review under the 48-month Extended Fund Facility on Wednesday 12, providing Sri Lanka with immediate access around US $336 million third tranche of the bailout to support its economic policies and reforms.
Performance under the programme has been strong. All quantitative targets for end-December 2023 were met, except the indicative target on social spending, it said.
Most structural benchmarks due by end-April 2024 were either met or implemented with delay. Nevertheless, the economy is still vulnerable and the path to debt sustainability remains knife-edged.
Addressing a related IMF press briefing held virtually on Friday, IMF Senior Mission Chief for Sri Lanka Peter Breuer stated that the IMF fully respects the democratic process for elections to take place in any country and they adapt to the relevant process.
Sri Lanka faces considerable uncertainties associated with the upcoming presidential elections and ongoing debt restructuring.
He also cautioned that the elections may affect the timing of IMF’s missions in order to discuss compliance with the programme and reforms going forward. At present there is sufficient progress for Sri Lanka’s debt restructuring process, he added.
Sri Lanka has made substantial progress towards advancing debt restructuring to restore debt sustainability.
It has to finalise a Memorandum of Understanding with the Official Creditor Committee soon and enter into final agreements with the Export Import Bank of China considering it as a priority, he said.
“The elections have not been called yet. We will await that and discuss with the authorities how we can adapt our schedule to that of the elections,” Mr. Breuer pointed out.
He warned that it is not feasible to reduce taxes by any administration as it was significant how the reduction in government revenues had contributed to a very severe crisis in Sri Lanka.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!