Connect with us

News

Wrapping up Sri Lanka external debt deals critical, property tax needed: IMF

Published

on

Sri Lanka’s economy is starting to recover under a stabilization program, and further progress has to be made on debt restructuring while monetary policy decisions have to be prudent to keep inflation down, an International Monetary Fund official has said.

“A swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical,” IMF Senior Mission Chief Peter Breuer said after a staff visit.

“Building on the Central Bank of Sri Lanka’s success in taming inflation, future monetary policy decisions should remain prudent with a focus on keeping inflation expectations well anchored.”

The mission called for a speeding up a “progressive property tax”.

Swift progress towards the introduction of a progressive property tax is key to ensuring fair burden sharing while sustaining the revenue-based consolidation.

The full statement is reproduced below:

Colombo, Sri Lanka – January 19, 2024: An International Monetary Fund (IMF) mission team led by Mr. Peter Breuer visited Sri Lanka from January 11 to 19, 2024 to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the EFF arrangement. At the end of the mission, Mr. Breuer issued the following statement:

“The economic reform program implemented by the Sri Lankan authorities is yielding the first signs of recovery. Real GDP recorded positive growth of 1.6 percent year-on-year in the third quarter of 2023, the first expansion in six consecutive quarters. Shortages of essentials have eased, and inflation remains contained. Gross international reserves increased by USD 2.5 billion during 2023, and preliminary data point to improved fiscal revenue collections during the fourth quarter of 2023. However, challenges remain as these improvements need to translate into improved living conditions for Sri Lanka’s people.

“In this context, sustaining the reform momentum and ensuring timely implementation of all program commitments are critical to rebuilding confidence and putting the recovery on a firm footing that will benefit all people. Swift progress towards the introduction of a progressive property tax is key to ensuring fair burden sharing while sustaining the revenue-based consolidation.

Tax policy measures need to be accompanied by strengthening tax administration, removing tax exemptions, and actively eliminating tax evasion to make the reforms more sustainable and to further build confidence among creditors to support Sri Lanka’s efforts to regain debt sustainability.

“Building on the Central Bank of Sri Lanka’s success in taming inflation, future monetary policy decisions should remain prudent with a focus on keeping inflation expectations well anchored. Against continued uncertainty, it remains important to continue rebuilding external buffers through strong reserve accumulation. Protecting the poor and the vulnerable through improved targeting and better coverage of cash transfers remains critical.

“To safeguard the stability of the financial sector and bolster its capacity to support economic growth, the authorities need to urgently finalize amendments to the Banking Act in line with their commitment under the IMF-supported program, implement the bank recapitalization plan and strengthen the financial supervision and crisis management framework.

“Following the publication of the IMF Governance Diagnostic report, it is now imperative for the authorities to adopt their own action plan for implementing the recommendations in the report beyond the priority commitments under the EFF arrangement. At the same time, ensuring an enabling environment for governance and transparency reforms to take place is key to bolstering public confidence and facilitating implementation of these important efforts.

“The authorities have made commendable progress with putting debt on a path towards sustainability. The execution of the domestic debt restructuring was an important milestone. A swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical. Progress in meeting key commitments under the IMF-supported program will be formally assessed in the context of the second review of the EFF arrangement alongside the forthcoming 2024 Article IV consultation assessing Sri Lanka’s economic health.

“The IMF team held meetings with President and Finance Minister Ranil Wickremesinghe, Central Bank of Sri Lanka (CBSL) Governor Dr. P. Nandalal Weerasinghe, Speaker Mr. Mahinda Yapa Abeywardana, Minister Mr. Kanchana Wijesekera, Minister Mr. Wijeyadasa Rajapakse,State Minister Mr. Shehan Semasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, Governor of Northern Province Mrs. P.S.M.Charles, Governor of Eastern Province Senthil Thondaman, and other senior government and CBSL officials. The IMF team also met with Parliamentarians, representatives from the private sector, civil society organizations, and development partners.

“We would like to thank the authorities for the excellent collaboration during the mission, including during the mission’s visit to the Northern and Eastern provinces. This visit enriched the mission team’s understanding of the challenges as well as the potential of Sri Lanka. We reaffirm our commitment to support Sri Lanka for a full economic recovery from the crisis.”

(economynext.com)

News

PCB postpones PSL

Published

on

By

The Pakistan Cricket Board (PCB) has announced the postponement of the remaining eight matches of the HBL PSL X.

A statement from Pakistan Cricket Board says : 

The last 24 hours have seen a worsening of the situation on the LOC, increased incursion of 78 drones, and the firing of surface to surface missiles from India.

The decision to postpone has been taken pursuant to advice received from the Prime Minister Mian Muhammad Shahbaz Sharif who has kept in view the reckless aggression from India that has escalated to a point where national attention and sentiments are rightly focused on the courageous efforts of the Armed Forces of Pakistan who are vociferously upholding the sovereignty of our beloved Pakistan.

The PCB and its players stand resolutely in solidarity with the families of the martyrs and our security personnel defending the nation.

The PCB recognizes the efforts and support of its partners, franchises, participating players, broadcasters, sponsors, and organizers in having ensured the smooth conduct of the tournament thus far, however; cricket while being a unifying force and a source of joy, must take a respectful pause when the country is facing such callous opposition.

We, at the PCB, also have sincere regard for the mental well-being of participating players and the sentiments of our foreign players, and we respect the concerns of their families who want to see them back home.

Yesterday, it was also announced that the IPL will also be suspended for a week.

Related News :

IPL suspended for a week over safety concerns

Continue Reading

News

Minister Nalinda elected President of Sri Lanka-India Parliamentary Friendship Association

Published

on

By

Minister of Health and Mass Media and Chief Government Whip Dr. Nalinda Jayatissa has been elected as the President of the Sri Lanka – India Parliamentary Friendship Association for the Tenth Parliament, the Department of Communications of Parliament said.

The revival meeting of the Friendship Association was held on May 08, 2025 in Parliament under the patronage of the Speaker of Parliament, Dr. Jagath Wickramaratne.

The High Commissioner of India to Sri Lanka, Santosh Jha, graced the occasion as the Guest of Honor. The event was also attended by the Deputy Speaker of Parliament, Dr. Rizvie Salih, the Leader of the Opposition, Sajith Premadasa, Ministers, Deputy Ministers, Members of Parliament, and the Secretary General of Parliament, Mrs. Kushani Rohanadeera.

At the meeting, Member of Parliament Dr. Kavinda Jayawardhana was elected as the Secretary of the Sri Lanka – India Parliamentary Friendship Association, the statement added.

During the meeting, representatives from both Sri Lanka and India highlighted the deep-rooted and enduring relationship between the two nations, spanning centuries. They emphasized the importance of strengthening parliamentary cooperation through exchange programs and sustained dialogue, according to the statement.

The Speaker expressed appreciation for India’s steadfast support during Sri Lanka’s most challenging times. He also highlighted the recent state visit of President Anura Kumara Dissanayake to India as a key milestone that has opened new avenues for bilateral collaboration. 

He also expressed his gratitude for organizing the upcoming Capacity Building Programme for newly elected Members of Parliament of Sri Lanka, to be conducted by the Bureau of Parliamentary Studies and Training of India later this month, it added.

Addressing the gathering, the High Commissioner of India to Sri Lanka, Santosh Jha, recalled the successful visit of the Indian Prime Minister Narendra Modi to Sri Lanka and reaffirmed India’s commitment to support Sri Lanka across multiple sectors as a close and trusted neighbor.

In his speech, the newly elected President Dr. Nalinda Jayatissa emphasized the vital role of the Friendship Association as a bridge between the two Parliaments and expressed confidence in fostering meaningful engagement to deepen the already strong ties between Sri Lanka and India, it said.

Delivering the vote of thanks, the Secretary of the Friendship Association he Dr. Kavinda Jayawardhana conveyed his heartfelt appreciation to India for its enduring friendship and reaffirmed Sri Lanka’s commitment to continued cooperation.

Continue Reading

News

Vesak week commences tomorrow

Published

on

By

The National Vesak Week will commence tomorrow (May 09), under this year’s theme of “Let’s associate with noble people with good qualities.”

According to the secretary to the Ministry of Buddha Sasana, Religious and Cultural Affairs, W.P. Senadheera said that it will continue until May 16.

The official inauguration ceremony will take place tomorrow at the Nuwara Eliya Buddhist Center, under the patronage of President Anura Kumara Dissanayake.

Sri Lanka Railways has announced special train services during the Vesak week and the long weekend.

Meanhwile, the Ministry of Public Administration has ordered the closure of slaughterhouses, meat vendors, casinos, and clubs nationwide from May 12 – 14 May for the state Vesak Festival. 

A circular issued on April 29 instructs all relevant businesses to comply during the period.

Continue Reading

Trending

Copyright © 2024 Sri Lanka Mirror. All Rights Reserved