Sep 30, 2017

IMF commends SL’s efforts to meet quantitative targets

The Sri Lankan authorities have been commended for the strong efforts in implementing their IMF-supported economic reform programme with all quantitative performance targets through end-June 2017 having been met and the landmark Inland Revenue Act (IRA) legislation passed by Parliament. IMF mission Chief Jaewoo Lee said at a media conference in Colombo on Friday.

The government has been mixed in implementing structural reforms—especially in relation to state owned enterprises (SOEs) and public financial management, he added.
The Central Bank should continue to remain vigilant in monitoring inflation pressures and stand ready to tighten monetary policy if needed to contain inflation or credit growth.

The CBSL’s drive towards gradually rebuilding reserves should continue, he said.
A staff team from the International Monetary Fund (IMF) led by Jaewoo Lee visited Colombo during September 18-29, 2017 to hold discussions on the third review of the Sri Lankan authorities’ economic program that is being supported by a three-year Extended Fund Facility (EFF).

The programme aims to support the authorities’ ambitious reform agenda to put public finances on a sustainable footing and create space for social and development programme, Mr. Lee said:

“The mission made significant progress toward reaching a staff-level agreement with the government on completing the third review of the EFF. Discussions will continue in October in Washington D.C. during the Annual Meetings of the IMF and the World Bank’ he pointed out.