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Reform program for SL prioritizes 5 key pillars – IMF

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The IMF said that its reform program supported under the EFF arrangement for Sri Lanka is built on strong policy measures and prioritizes five key pillars.

1. An ambitious revenue-based fiscal consolidation,which is accompanied by stronger social safety nets, fiscal institutional reforms, and cost recovery-based energy pricing to ensure the state’s ability to support all its essential expenditures.

2. Restoration of public debt sustainability including through a debt restructuring to ensure stable financing of the government’s operations.

3. A multi-pronged strategy to restore price stability and rebuild reserves under greater exchange rate flexibility to alleviate the burden of inflation, particularly on the poor, to foster an environment of investment and growth, and to ensure Sri Lanka’s ability to purchase essential goods from abroad.

4. Policies to safeguard financial sector stability, to ensure that the financial sector can play its key role in supporting economic growth.

5. Structural reforms to address corruption vulnerabilities and enhance growth.

Krishna Srinivasan, Director of Asia and Pacific Department, IMF said on Monday (15) that Anti-corruption and governance reforms are imperative to ensure the hard-won gains from the reforms benefit the Sri Lankan people. 

“Sri Lanka is the first country in Asia that has undergone the IMF governance diagnostic exercise. The IMF governance diagnostic report is expected to be published by September this year—the mission visited Colombo in March and engaged closely with stakeholders and civil society organizations on this critical reform area. We look forward to further discussion with them,” he added.

Commendably, Sri Lanka has already started implementing many of the challenging policy actions in these five areas. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people, more broadly, said Krishna Srinivasan, Director of Asia and Pacific Department, IMF.

He noted that the IMF supported program is an opportunity for all Sri Lankans to come together to work through this crisis to restore economic stability and put the country on a sustainable growth path.

“The key is implementation. The IMF is here to help you along the way.” he added.

(newsfirst.lk)

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President AKD returns to SL

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President Anura Kumara Disanayaka has returned to Sri Lanka today (June 15) after a successful visit to the Federal Republic of Germany from June 11 -13.

A statement issued in this regard by the Sri Lankan Ministry of Foreign Affairs, Foreign Employment and Tourism further notes :

President Disanayaka undertook the visit at the invitation of the President of Germany, Frank- Walter Steinmeier, who welcomed him at the Bellevue Palace in Berlin on 11 June 2025, with a ceremonial Guard of Honour accorded by the German Armed Forces.

During the bilateral talks, the two heads of state focused on further strengthening the cordial bilateral relationship and utilizing emerging economic opportunities in areas such as vocational training and the tourism industry. President Disanayaka also briefed the German President on the recent developments in Sri Lanka, including the economic stabilization and reconciliation efforts undertaken and envisaged future action.

During the visit, the German Foreign Minister Dr. Johann Wadephul and German Federal Minister for Economic Cooperation and Development Ms. Reem Alabali-Radovan called on President Disanayake. The discussions with the German Foreign Minister Dr. Wadephul focused on increasing the growing bilateral exchanges between the two countries, economic stabilization efforts, enhancing German investment, the GSP plus trade facility with the European Union, and strengthening cooperation in the multilateral arena.

During the meeting with Minister Alabali-Radovan, President Disanayaka appreciated the development assistance from the German government, which had benefitted the country for more than 65 years, with recent examples being the German-Sri Lanka Friendship Maternity Hospital in Galle and the German Technical Training Institute in Kilinochchi. Discussions also focused on future projects, especially expanding vocational education and training opportunities.

During the visit, the State Secretary of the German Federal Ministry for Economic Affairs and Energy, Dr. Thomas Steffen called on Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath and discussed Sri Lanka’s recent economic progress, improved political stability, and the government’s ongoing efforts to create a more investor- friendly environment.

The visit primarily focused on strengthening economic cooperation between the two countries, including considerable opportunities in emerging areas. Addressing a business forum organized by the Sri Lanka Embassy in Berlin, the German Chamber of Commerce and Industry (DIHK) and the German Asia-Pacific Business Association (OAV) and held at the headquarters of the DIHK, President Disanayake reiterated that Sri Lanka will create a conductive and transparent investment climate and invited the business community to make use of opportunities presented by Sri Lanka’s development potential and strategic location.

At a meeting with key tourism industry associations in Germany focused on outbound tourism, President Disanayake explained the plans of the government to protect the sustainable nature of the tourism industry of Sri Lanka and to address constraints such as human resource development to ensure the continued growth of the vital industry. The President also addressed aspects related to investment in the tourism industry.

The President was accompanied to the meetings by the Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath; Sri Lanka’s Ambassador to Germany Varuni Muthukumarana; Director General for Europe and North America at the Ministry of Foreign Affairs, Foreign Employment and Tourism Sugeeshwara Gunaratna; Chairman of the Board of Investment Arjuna Herath; and other Senior Government officials.

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IMF’s Dr. Gita Gopinath arrives in SL

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Dr. Gita Gopinath, the First Deputy Managing Director (FDMD) of the International Monetary Fund (IMF), has arrived in Sri Lanka for a two-day official visit.

According to the Central Bank of Sri Lanka (CBSL), it is the first time since 2005 that a serving FDMD of the IMF has visited Sri Lanka.

During this visit, Dr. Gopinath will be the guest of honour at the conference on “Sri Lanka’s Road to Recovery: Debt and Governance”, co-hosted by the Ministry of Finance, Central Bank of Sri Lanka and the IMF, scheduled to be held tomorrow (June 16).

At the mid-point of the IMF-supported reform programme, the conference aims to reflect upon the lessons learnt from Sri Lanka’s experience in restoring macroeconomic stability, implementing debt restructuring and governance reforms, and to focus on the challenges ahead.

Dr. Gopinath is also expected to hold bilateral discussions with the Sri Lankan authorities and several key stakeholders on the IMF’s engagement with Sri Lanka.

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Gen Hamilton Wanasinghe’s funeral at Borella today

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General Hamilton Wanasinghe, a former Army Commander and Secretary to the Ministry of Defence, passed away on Friday (June 13) following a brief illness. He was receiving treatment at the Narahenpita Army Hospital at the time of his death.

His funeral, with full military honours, will be held at the new crematorium of the General Cemetery in Borella today (15) at 5.30 pm. The remains of the late senior officer were kept in Malwana from Friday (13) for the public to pay their final respects.

General Wanasinghe served in Sri Lanka’s armed forces for four decades and was appointed as the the country’s 11th Army Commander in 1988. He also held the posts of Joint Operations Commander (from November 19, 1991 to September 6, 1993, and Defence Secretary from September 1993 to February 1995).

He began his military journey in 1954, joining the Ceylon Army as an Officer Cadet. He received his basic training at the Royal Military Academy Sandhurst and was later commissioned as a Second Lieutenant in the Ceylon Artillery.

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