President reassures IMF chief of govt’s commitment to successfully complete remaining reviews under EFF

President Anura Kumara Dissanayake held a highly productive virtual meeting with the Managing Director of the IMF, Ms. Kristalina Georgieva, yesterday (07), according to the President’s Media Division (PMD).

The discussion focused on further strengthening the partnership between Sri Lanka and the IMF as the country successfully reaches the halfway mark of its 48-month Extended Fund Facility (EFF) arrangement, which commenced in March 2023.

During the meeting, President Dissanayake expressed his profound appreciation for the IMF’s continued support in recovering from the catastrophic economic crisis of 2022. 

He highlighted the significant progress Sri Lanka has made in implementing economic reforms, strengthening macroeconomic stability, supporting the vulnerable and improving governance. 

The President particularly appreciated the support of the Managing Director, the Senior Management, and the IMF staff during the debt restructuring process. 

He emphasized the importance of ongoing collaboration to ensure the resilience of Sri Lanka’s economy amidst global economic uncertainties, the PMD said.

Ms. Georgieva congratulated the President for ensuring macroeconomic stability and completing the 3rd review under the EFF, as well as the successful completion of the bond exchange and most of the debt restructuring. 

The Managing Director commended Sri Lanka’s efforts in pursuing key reforms and reaffirmed the IMF’s commitment to supporting Sri Lanka’s economic agenda. Ms. Georgieva underlined the importance of strengthening macroeconomic fundamentals with good governance frameworks, especially in the wake of high global uncertainties, slowing global growth, and rising global debt levels.

President Anura Kumara Dissanayake reaffirmed his commitment to move forward with the IMF program while ensuring that the agreed-upon targets align with the aspirations of the Sri Lankan people, reflecting their strong democratic mandate. 

The President emphasized that the government remains dedicated to implementing the necessary mechanisms to uplift the underprivileged while prioritizing the strengthening of social welfare expenditures as a key policy focus, the statement said. 

The President highlighted the government’s dedication to enhancing state-owned enterprises through improved governance and cost-recovery pricing, including for electricity. 

He also stressed the importance of securing foreign direct investment and support from multilateral partners to reduce debt vulnerabilities and promote sustainable and inclusive growth. President Dissanayake reassured the IMF of the government’s commitment to successfully completing the remaining reviews under the EFF.

Looking ahead, Ms. Georgieva emphasized the need to persevere with the reform agenda under the program to decisively put Sri Lanka on the path to sustainable and equitable growth. She acknowledged that the journey to sustained recovery remains challenging, particularly given rapid global developments in technology and geopolitics, it added. 

The Managing Director underscored the IMF’s role as a steadfast partner of Sri Lanka and highlighted that the IMF stands ready to support Sri Lanka’s endeavors to foster inclusive growth, alleviate poverty, and enhance the quality of life for its people.

Both the President and the Managing Director agreed on the necessity of continued dialogue and cooperation to achieve sustained stability for Sri Lanka. The meeting concluded with a mutual commitment to work together towards a prosperous and sustainable future for Sri Lanka.

--PMD--