Sri Lanka likely to sign IMF staff-level agreement on Nov. 23
November 21, 2024 01:16 pm
President Anura Kumara Dissanayake has expressed confidence that the staff-level agreement on the third review of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) arrangement for Sri Lanka could be finalized and signed by November 23.
Highlighting the critical role of economic stability, the President underscored the importance of adhering to existing agreements.
“We inherited a country already bound by an agreement with the IMF when we assumed office. Breaking away from this agreement is not an option if we aim to progress,” he stated, reiterating the government’s commitment to managing the economy within the framework of the agreed parameters of the IMF.
The President acknowledged the delay in the third review, initially scheduled for September, attributing it to the recent elections. However, he noted that the IMF delegation resumed discussions immediately after the 2024 General Election.
“We are engaged in extensive discussions, and we are hopeful of finalizing the staff-level agreement within this week. Signing the agreement on November 23 will mark a decisive step in advancing the IMF program,” he added.
Addressing the challenges of debt restructuring, the President explained that much of the groundwork had already been completed before his administration took office.
“Bilateral debt restructuring agreements were finalized, and discussions on sovereign bonds concluded just days before the Presidential Election”, he added.
Furthermore, Dissanayke expressed: “Debating whether these agreements are good or bad is futile at this stage. Debt restructuring was at its final stages when we assumed power, and reopening discussions would stall economic progress for a longer period. Separate agreements with creditor nations will follow soon, while the sovereign bond agreement is expected to conclude by December”.
The President emphasized that signing the staff-level agreement with the IMF is a crucial step towards building a stable and reliable economic future for Sri Lanka, stating, “The current economic climate leaves no room for error. By moving forward decisively, we can restore public and international confidence in our economy,” he concluded.
