IMF agreement with Sri Lanka must depend on key reforms: US senate committee

IMF agreement with Sri Lanka must depend on key reforms: US senate committee

July 2, 2022   06:59 pm

United States Senate Foreign Relations Committee says the International Monetary Fund’s agreement with Sri Lanka must be contingent on Central Bank independence, strong anti-corruption measures and promotion of the rule of law.

“Without these critical reforms, Sri Lanka could suffer further economic mismanagement & uncontrollable debt,” the committee said further in a tweet.

 

 

The IMF, upon concluding the mission staff’s visit to Sri Lanka earlier this week, stated that talks with Sri Lankan authorities made “significant progress” on defining a macroeconomic and structural policy package.

An IMF mission team led by Peter Breuer and Masahiro Nozaki visited Colombo from June 20 to 30 to discuss the Fund’s support for Sri Lanka and the authorities’ comprehensive economic reform program.

The IMF team also reaffirmed its commitment to support Sri Lanka at this difficult time in line with the IMF’s policies.

The team said it had constructive and productive discussions with the Sri Lankan authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement.

The staff team and the authorities made significant progress on defining a macroeconomic and structural policy package, according to the statement.

“The discussions will continue virtually with a view to reaching a staff-level agreement on the EFF arrangement in the near term. Because public debt is assessed as unsustainable, Executive Board approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored,” the team said further.

Disclaimer: All the comments will be moderated by the AD editorial. Abstain from posting comments that are obscene, defamatory or slanderous. Please avoid outside hyperlinks inside the comment and avoid typing all capitalized comments. Help us delete comments that do not follow these guidelines by flagging them(mouse over a comment and click the flag icon on the right side). Do use these forums to voice your opinions and create healthy discourse.

Most Viewed Video Stories

Sri Lanka Tourism Awards 2024 held in Colombo (English)

Sri Lanka Tourism Awards 2024 held in Colombo (English)

Fitch raises Sri Lanka rating to 'CCC+' after creditor nod to debt overhaul (English)

CBSL introduces new loan rescheduling measures for SMEs (English)

'Hard work and sacrifice paid off': Treasury Secretary hails Sri Lanka exiting default (English)

LIVE🔴 Ada Derana Prime Time News Bulletin 6.55 pm

LIVE🔴 Ada Derana Lunch Time News Bulletin 12.00 pm

Deputy Minister discusses challenges hindering Sri Lankan industries' growth with WB officials (English)

Sri Lanka Cricket implements historic amendments to constitution (English)