On the 4th, President Anura Kumara Dissanayake engaged in a significant discussion with representatives from the International Monetary Fund, marking the first such discussion following his assumption of the presidency.
The extensive deliberation revolved around strategies to fulfil the objectives of the loan program established with the International Monetary Fund.
A key focal point of the discussion was the mitigation of hardships experienced by the populace as a result of the financial program.
In response, President Anura Kumara Dissanayake proposed the exploration of alternative methods to successfully achieve the program’s goals.
Julie Kozak’s position
The Director of the International Monetary Fund’s Communications Department, Julie Kozak, held a press conference in the United States of America and emphasised the importance of continuing Sri Lanka’s economic reform program.
In response to questions about Sri Lanka, she expressed her expectation for continued strong program performance and highlighted the country’s achievements in reviving economic growth, reducing inflation, and increasing reserves and revenue mobilisation.
However, she also noted significant risks and uncertainties in Sri Lanka and stressed the importance of maintaining the reforms.
The International Monetary Fund has also provided information about the release of the third loan tranche for Sri Lanka. The dates for the third evaluation of the economic reforms will be announced in the future.
Currently, a delegation including Director of International Monetary Fund’s Asia Pacific Department, Krishna Srinivasan, and Senior Mission Chief Dr. Peter Brewer is visiting Sri Lanka to gather related information.
A special review
On October 2nd, representatives of the International Monetary Fund arrived in Sri Lanka and met with the economic team appointed by the new President Anura Kumara Dissanayake at the Presidential Secretariat to start negotiations.
The Government Information Department announced that the representatives are in Sri Lanka to discuss the progress of the Financial Fund program and the fourth instalment of the Extended Fund Facility amounting to $2.9 billion.
The representatives are also planning to review the existing program between the International Monetary Fund and Sri Lanka, with joint participation from both parties.
Dr. Harshana Suriyapperuma, Chairman of the Economic Policy Council and Senior Advisor to the President on Economic Affairs and Finance, along with Prof. Anil Jayantha, have actively participated in the discussions representing Sri Lanka.
Amendments from the President to remove people’s pressure
Sri Lanka was approved to release US$336 million as the third loan tranche under the International Monetary Fund’s Extended Credit Facility last June.
In a press release issued by the Presidential Media Division on October 3, it was stated that the President clarified the importance of approaching goals through alternative means to the representatives of the International Monetary Fund, aiming to remove the burden placed on the people.
Steps were also taken to review the progress of the current program between the International Monetary Fund and Sri Lanka.
The President emphasised that the government’s contribution will be made in principle with the objectives of the program implemented with the International Monetary Fund.
However, the President has decided to provide relief to the people affected by VAT and income tax. The amendments presented by the President are crucial to moving this program forward, and it seems that the International Monetary Fund has also paid attention to those amendments.
However, it has now been confirmed that the program with the International Monetary Fund will continue. The President’s efforts to move forward while protecting the economic stability of Sri Lanka are very important.
