Sri Lanka: Govt Ready To Engage with Opposition on IMF Program

COLOMBO (News 1st); The Sri Lankan government has affirmed its readiness to address the request put forth by the Samagi Jana Balavegaya (SJB) regarding discussions related to the International Monetary Fund (IMF) program and interactions with creditors. 

State Minister of Finance, Shehan Semasinghe, made this statement on X, formerly known as Twitter.

In response to the SJB’s call for transparency, Semasinghe emphasized that the government is prepared to provide any additional information requested. However, he clarified that certain market-sensitive details cannot be disclosed at this time.

The minister expressed disappointment over the opposition’s failure to acknowledge previous discussions conducted in good faith. These discussions included alternative proposals, such as debt restructuring, aimed at addressing the country’s economic challenges. Despite this setback, the government remains committed to facilitating further dialogue, he said.

PRESIDENT CALLS FOR TALKS:

President Ranil Wickramasinghe over the weekend initiated discussions to facilitate the leaders in the oppositions for a deliberation on the proposals put forth by the IMF. 

Invitations were extended to prominent opposition figures including Sajith Premadasa, Anura Kumara Dissanayake, and S. Sridharan, leader of the Tamil National Alliance, with an open invitation for additional participants to acconmany them.

The President's Media Division said that the President Wickremesinghe had underscored the critical importance of successfully advancing the IMF program for the country’s reconstruction. To this end, he emphasizes the necessity of collective accountability from all parties involved.

However, some notable absences from the discussion include the Samagi Janabalawega, whose official stance is non-participation, as communicated to the President's office.

Similarly, the Jathika Jana Balavegaya has declined participation, as articulated by MP Vijitha Herath.

While certain parties such as the Sri Lanka Freedom Party await formal invitations, others like the Tamil National People's Front lamented the lack of invitation altogether.

The Ilangai Tamil Arasu Katchchi presented a divided stance, with S. Sridharan opting out of participation while MP M.A. Sumanthiran, intend to engage in the discourse.

Expressing a nuanced perspective, Sri Lanka Muslim Congress leader Rauf Hakeem acknowledges the significance of the President's initiative but underscores the importance of timely invitations to such discussions.

SUMANTHIRAN SOLE PARTICIPANT:

Parliamentarian M. A. Sumanthiran, PC was the ONLY MP that represented the opposition at Monday's (11) meeting at the President's Office to discuss the IMF-supported program for the country.

Following the discussion convened by the President regarding the International Monetary Fund (IMF) program, M. A. Sumanthiran, PC voiced significant concerns regarding the lack of transparency surrounding the IMF program's implementation. 

Notably, Sumanthiran was the sole opposition member present at the meeting, which included high-ranking government officials such as the President, Prime Minister, Leader of the House, Two State Ministers of Finance, Governor of the Central Bank, and Secretary to the Treasury.

Sumanthiran emphasized the absence of published technical assistance reports from the IMF, which serve as the analytical basis for the recommendations made by the organization. 

He questioned the rationale behind certain revenue-raising measures, such as the decision to increase the Value Added Tax (VAT) to 18%, instead of raising the withholding tax rate, which would have had a more immediate impact on revenue generation. 

Furthermore, Sumanthiran highlighted the government's failure to address 15 prior action items identified in the IMF program, which were supposed to be completed by February 2024. In response, the government cited discussions with the IMF that resulted in time extensions for these actions, he told reporters outside the President's Office.

Of particular concern to Sumanthiran was the inability of opposition members to access the technical assistance reports provided by the IMF to the government. However, following his inquiry, both the President and Prime Minister agreed to provide these reports upon request to opposition party leaders, allowing for a more informed assessment of the program's recommendations.

Sumanthiran reiterated his stance that without adequate transparency and consideration for the impact on the poor and vulnerable segments of society, the opposition cannot support the IMF program. 

GOLDEN OPPORTUNITY MISSED

Sri Lanka's State Finance Minister Shehan Semasinghe expressed disappointment over the opposition's decision to boycott a discussion initiated by President Wickremesinghe aimed at enhancing negotiations and furthering the International Monetary Fund (IMF) program.

Addressing the media, Minister Semasinghe remarked on the absence of the opposition during the discussion, with the exception of MP M. A. Sumanthiran, who participated and raised pertinent concerns. 

He highlighted President Wickrmesinghe's willingness to share requested information with Sumanthiran, albeit with some constraints on confidential data.

State Minister Semasinghe emphasized the importance of constructive dialogue for economic advancement, lamenting the missed opportunity for the opposition to contribute to decisions vital for improving Sri Lanka's economic conditions. 

He reiterated the President's openness to accommodating credible alternative proposals endorsed by the international community, as per IMF recommendations.

However, Semasinghe expressed reservations about sharing sensitive information, particularly pertaining to bond holder discussions, citing potential repercussions on the financial sector and concerns about favoritism within the opposition.

Furthermore, he underscored the government's commitment to engagement and dialogue, offering to facilitate further discussions with the opposition if credible alternative programs were proposed. 

JJB SAYS IMF WAS NOT AT PRESIDENT'S MEET

A delegation from the Jathika Jana Balavegaya (JJB) met with the IMF Mission in Sri Lanka at the Shangri-La in Colombo.

Former MP Sunil Handunnetti speaking to reporters following the meeting, said that the IMF mission had requested a meeting with the Economic Council of the Jathika Jana Balavegaya.

Handunnetti said that they raised concerns over the fact that a government with no mandate is attempting to address the issues in the country, adding that in order to alleviate the people from these issues, it was paramount to elect a government with a mandate.

He also went on to note that the IMF mission was not in possession of any documents to discuss the present status of the country's debt restructuring program. 

According to JJB member Sunil Handunnetti, the IMF mission in the country was not invited for the meeting convened by the President to discuss the IMF program with opposition groups.

Dr. Harshana Suriyapperuma, representing the Economic Council of the Jathika Jana Balavegaya,emphasized the importance of transparency and governance in Sri Lanka, echoing sentiments regarding the need for corruption-free leadership capable of delivering tangible outcomes. 

The discussion primarily focused on the progress of governance and reform frameworks recommended by the IMF team. Additionally, concerns were raised regarding recent governmental actions, notably the appointment of the Committee on Public Enterprises (COPE) Chairman, which sparked scrutiny.

One significant topic of discussion was the status of International Sovereign Bond (ISB) outstandings and bonds. It was noted that while no concrete agreement had been reached, discussions remained ongoing. Both parties expressed a desire to see progress on these matters without allowing them to unduly influence pending elections.

Dr. Suriyapperuma also highlighted discrepancies in recent discussions between the government and the IMF, where the IMF had not been formally invited despite the talks being portrayed as IMF-led.