Sri Lanka has reiterated its unwillingness to avail itself of the International Monetary Fund’s (IMFs) Rapid Credit Facility of US$ 800 million introduced to help countries deal with the fallout from the COVID-19 pandemic, Central Bank Governor W.D. Lakshman Governor emphasized at a media conference on Tuesday.
He noted that the government’s policy was to ensure the economic stability by taking sustainable foreign financing measures and increased non debt foreign exchange inflows into the country.
This strategy is quite out of way from the interventional approach of international financial agencies, he said pointing out that the low interest rate regime will continue with enhanced market liquidity.
He stated that the policy of not pursuing foreign debt-creating public investments will make government debt more manageable
Sri Lanka is set to move away from an import-oriented market economy towards a production-oriented strategy despite a multitude of economic issues including the COVID-19 pandemic.
The IMF says it stands ready to discuss all options of engagement with Sri Lanka, including financial support, if requested by the authorities.
The preconditions for financial support are the same as for any other member, Masahiro Nozaki, IMF mission chief disclosed recently.
In April 2020, IMF received a request from the Sri Lankan authorities for emergency financial support under the Rapid Financing Instrument (RFI),
Assessing relevant conditions for the RFI has taken longer than for other countries, due to Sri Lanka’s daunting economic challenges, high public debt, and Parliamentary elections in August. The RFI request remains in place, Mr. Nozaki pointed out.
“We have sought but not reached understanding yet on how to fulfill key requirements for the RFI, which include policies to continue ensuring debt sustainability,” he said.
The authorities have a range of options to ensure debt sustainability and the IMF stands ready to discuss all options with the authorities, he assured.
Mr. Ali Sabri Rahim, a Member of Parliament (MP) for Puttalam District whom an open warrant had been issued, attended a public ceremony at Al Aksha National School in Kalpitiya today (16) as the special guest of honor.
The Supreme Court today refused interim relief in an application filed by President’s Counsel Senaka Walgampaya seeking an Order from the Supreme Court compelling the President to appoint judges to fill the existing vacancies in the Court Of Appeal.
Gazette on new speed limit regulations to be issued within two weeks
Senior DIG Nilantha Jayawardena has been sent on compulsory leave pending disciplinary investigation over his failure to prevent the Easter Sunday bombings.
Two underworld criminals wanted for multiple crimes, including murder, were brought from Dubai to Sri Lanka, today (12).
The 22nd amendment to the constitution dealing with the term of the President has been gazetted by order of President Ranil Wickremesinghe.
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