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

UNDCO Regional Director for Asia-Pacific calls on President Ranil Wickremesinghe (English)

UNDCO Regional Director for Asia-Pacific calls on President Ranil Wickremesinghe (English)

CID records nearly 5-hour statement from Maithripala (English)

Fuel supply to 12 filling stations suspended for ignoring guidelines (English)

Police to obtain detention orders on 3 including IUSF's Wasantha Mudalige (English)

Japan provides JPY 500 million medical grant to Sri Lanka (English)

Sri Lanka's net debt per capita rapidly on the rise

NEWS IN BRIEF- 2022.08.19

Books authored by student during Covid-19 pandemic launched under'Ratak Watina Pothak'