IMF or no IMF, Sri Lanka possesses expertise to handle economy

Sri Lanka will not seek IMF assistance and their economic restructuring programme for debt servicing and economic reforms as the country is already implementing a publicly-backed plan.

Such a pragmatic plan has been devised by Central Bank experts who are very capable in handling all sectors of the economy, Central Bank Governor Ajith Nivard Cabraal emphasised at a media conference in Colombo today (Thursday).

“We have our own experts highly capable and more accountable to manage debt servicing and economic restructuring; we don’t need foreign expertise to suggest restructuring state owned enterprises, devise formulas for fuel and electricity tariffs or sell land while pruning public sector and welfare activities,” he said.           

 A home-grown solution with proper discipline can bring more benefits to the country; he pointed out adding that the Central Bank staff consists of 361 experts with doctorates and 400 other members with master’s degrees to provide a very good credible economic analysis and maintain economic and price stability.

The government will service all its debts on time without default adopting a suitable debt restructuring programme and increasing non-debt inflows as a main strategy.

The reliance on International Sovereign Bonds (ISBs) will be replaced with Government-to-Government loans, central bank to central bank swaps, securitising remittances and other foreign exchange inflows, the Governor said.

The other options are increasing the value of exports monetisation of identified assets and remittances and see that export earnings end in cash so that there would be new inflows into the overall system.

If Sri Lanka Tourism inflows and remittances recover, then the country would be able to achieve an economic growth of 6 per cent next year, he added. (Bandula)