Reforms starting to pay off! Kristalina tells Ranil in Davos

COLOMBO (News 1st); International Monetary Fund (IMF) Managing Director Kristalina Georgieva met with Sri Lankan President Ranil Wickremesinghe at the World Economic Forum in Davos, Switzerland, and took the opportunity to praise the country's economic reform efforts.

Georgieva highlighted the significance of the IMF Board's approval of the first review of Sri Lanka's Extended Fund Facility (EFF) program in December 2023. This approval, she stated, "was a recognition of the important reforms Sri Lanka has pursued."

Expressing optimism about the progress made, Georgieva further declared, "These reforms are starting to pay off!" 

At a separate event on the sidelines of the World Economic Forum, President Ranil Wickremesinghe offered a cautiously optimistic outlook on Sri Lanka's economic recovery, highlighting progress in debt restructuring and praising the IMF's recent program review.

Wickremesinghe described his surprise when a visiting IMF team acknowledged Sri Lanka's "over-performance" in tackling the ongoing economic crisis. 

He underscored the severity of the crisis, stating that "it affected all adversely," and reiterated the importance of the debt restructuring agreement reached with the IMF.

"There is no other way out for Sri Lanka," Wickremesinghe emphasized, acknowledging the crucial role in facilitating negotiations with the country's creditors. 

According to Wickremesinghe, all of Sri Lanka's official creditors have agreed in principle to restructure debt in line with the IMF's target requirements. The next hurdle lies in finalizing discussions with commercial creditors.

The successful completion of the IMF's first program review in December 2023 further emboldens Sri Lanka's optimism.

Wickremesinghe said this achievement is a turning point, paving the way for the economy to shift from stabilization to recovery and growth in 2024.

He emphasized the need for continued commitment to IMF-backed reforms and reiterated the importance of transparency and accountability.