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IMF applauds SL’s progress in implementing economic reforms

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During a meeting between President Ranil Wickremesinghe, Sri Lankan authorities and the International Monetary Fund (IMF) yesterday (11), the IMF congratulated the country on completing the first review under its program.

 The IMF highlighted the positive start of the program, recognizing the challenging reforms undertaken by Sri Lanka and their significant impact on the domestic population. Directors at the executive board meeting applauded Sri Lanka’s courage in publishing the governance diagnostic, a pioneering effort in Asia. 
Senior Mission Chief for Sri Lanka, Peter Breuer noted that encouraging signs were noted regarding the program’s impact on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting revealed promising revenue collection, indicating the effectiveness of implemented policies since reaching a staff level agreement in the second half of 2022. The IMF emphasized the positive surprise in these developments, boosting confidence with the international community, official creditors and private creditors. 

Mr. Peter Breuer told President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.” 

The board meeting recognized Sri Lanka’s success in reducing inflation significantly, attributing it to the government’s efforts in monetary policy and scaling back monetary financing. Positive outcomes, such as an increase in reserves, were also observed. The ongoing governance reforms were acknowledged as positive indicators, contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.

As the IMF plans its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs and urgent preparations for property taxation. The IMF stressed the importance of perseverance with ongoing reforms, addressing fiscal issues and advancing governance agendas.

The meeting also highlighted the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector. 

On the governance front, operationalizing the Anti-Corruption Commission, publishing action plans and meeting with the Constitutional Council for insights into commissioner selection processes were discussed.

The IMF commended Sri Lanka’s partnership on capacity development, emphasizing the importance of enhancing the skills of the civil service for the success of ongoing reforms. The program aims to build capacity in the civil service, crucial for the implementation of reforms. 

The authorities expressed approval for the program and discussions on its rollout and impact will continue in the coming weeks.

As the two-week mission unfolds, further discussions between Sri Lankan authorities and the IMF are expected to delve deeper into these key areas, providing a comprehensive overview of the progress and challenges in Sri Lanka’s economic reform journey.

State Minister for Finance Mr. Shehan Semasinghe, President’s Senior Advisor on Economic Affairs Dr. R.H.S. Samaratunga, Central Bank Governor Dr. Nandalal Weerasinghe,  Secretary of the Ministry of Finance Mr. Mahinda Siriwardena and other officials participated at this event. 

(President’s Media Division)

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Several non-profit state entities face likely closure

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A Cabinet-appointed committee that looked into reforming state-owned non-commercial institutions has recommended a string of restructuring measures, including winding up some state institutions, ending state intervention with several other institutions and amalgamation of some.

The liquidation of 12 non-commercial state entities coming under six ministries has been recommended by the committee along with the winding up of the Sri Lanka Mahaweli Authority and the Cashew Corporation. Others for which liquidation is recommended include the Galle Heritage Foundation, the National Ocean Affairs Committee Secretariat and the Information and Communication Technology Agency.

The committee has also recommended that the three state-owned media institutions, namely the Sri Lanka Broadcasting Corporation, the Rupavahini Corporation and the Independent Television Network, be placed under a single management so as to improve efficiency and make them commercially viable.

The committee said these media institutions needed significant investment for their survival, and hence its recommendation for single management.

Other institutes recommended for amalgamation are the Sri Lanka Tea Board and the Tea Small Holdings Development Authority, as well as the Coconut Cultivation Board, Coconut Development Authority and the Palmyra Development Board.

The committee headed by the Prime Minister’s Secretary, Pradeep Saputantri, was appointed in December last year to review all non-commercial state statutory institutions in the country, with a view to strengthening public service delivery and addressing inherent inefficiencies. It assessed 160 institutions coming under 24 ministries.

Prime Minister Harini Amarasuriya submitted the committee report to Cabinet on Monday, and approval was given to implement its proposals.

The committee found that some state institutions were running efficiently and should be managed in the same manner while recommending private-public partnerships to run others. The report said that the Sri Lanka Film Corporation, for example, could be run efficiently if it partnered with a private partner so that its dependency on the Treasury could be minimised.

The committee also recommended the amalgamation of the Office of the Commissioner General of Rehabilitation, the National Authority on Tobacco and Alcohol and the National Dangerous Drugs Control Board.

With regard to the Sir John Kotalawala Hospital, the committee said that the institution does not make any profits and has become a burden to the treasury and, therefore, recommends that a committee be appointed to study how it can be turned into a financially viable institution.

On the Sri Lanka Press Council, the committee recommends that it be continued with a change in name to Sri Lake Media Council to widen its reach.

The committee also noted that large extents of land that belong to different state institutions are lying idle and recommended that steps be taken to manage these in a manner for the benefit of the public.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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Devinuwara double murder: 4 suspects ordered detained for questioning

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The Matara Magistrate’s Court has ordered that the four suspects arrested in connection with the Devinuwara shooting incident be detained for questioning until March 29, Ada Derana reporter said.

Four people, including a woman, have been arrested on suspicion of the double murder. 

Accordingly, the permission for their detention has been granted when they were produced before the Acting Magistrate of Matara.

On March 21, two individuals were killed in a shooting incident on Sinhasana Road, in front of the southern entrance of the Devinuwara Sri Vishnu Devalaya, at around 11.45 p.m., according to the police.

Furthermore, police have uncovered more details regarding the double murder, with investigations pointing to notorious criminal Shehan Sathsara, infamously known as “Bale Malli,” as the prime suspect behind the crime.

According to the police, the shootings were allegedly carried out due to a dispute between the two victims, identified as Pasindu Tharaka (29) and Yomesh Nadeeshan, and ‘Bale Malli.’ The suspect is reported to be currently hiding in Dubai.

The victims, both residents of the area, were returning home from a birthday party in Kapugampura when they were ambushed by a group of attackers traveling in a van. The assailants rammed the motorcycle on which Tharaka and Nadeeshan were riding before opening fire with a T-56 rifle and a pistol.

The attackers immediately fled the scene after the shooting, leaving the victims dead on the spot.

Police later recovered 39 T-56 bullet casings and two 9mm bullet casings from the site of the crime. The van used by the shooters was later discovered 800 meters away from the scene, abandoned and set on fire.

(adaderana.lk)
(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

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Deshabandu allowed home-cooked food

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Former Acting Inspector General of Police (IGP) Deshabandu Tennakoon, currently remanded at Dumbara Prison in Pallekele, has been granted permission to consume home-cooked food. 

The Department of Prisons approved his request, citing his specific needs.

Prisons Spokesperson Gamini B. Dissanayake also confirmed that Tennakoon has been relocated to a secure area within the prison following his request for enhanced security. 

The Matara Magistrate’s Court recently ordered his remand until April 3 in connection with the Weligama W15 Hotel shooting incident.

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