IMF Agreement Validates Sri Lanka's Progress - Semasinghe

COLOMBO (News 1st) - Sri Lanka's Minister of State for Finance, Shehan Semasinghe, has asserted that the International Monetary Fund (IMF) has provided comprehensive responses to various survey reports and expert analyses concerning the country's economy.

He mentioned that following the country's first review of the IMF program, greater efforts had to be taken to secure a staff-level agreement, and it was a time-consuming process.

The State Minister noted that the IMF reaching a staff-level agreement at the same time they concluded the second review gives assurance that the country is heading towards a stable economy.

In a statement, the State Minister said that while one faction claimed that Sri Lanka only met 33% of the reform proposals, another faction claimed the government's approval rating dropped to 7%.

He noted that during the same time, certain factions claimed that the rupee would further depreciate against the dollar to Rs. 455 per dollar, while some claimed that inflation would not drop below 25% to 30%.

The State Minister said that the IMF Staff Level Agreement alone has challenged those claims, and these are the results of the commitment made by the 22 million people of the country.

Minister Semasinghe criticized the opposition for persisting with populist rhetoric, accusing them of seeking political acclaim while disregarding the country's economic imperatives.

He categorically dismissed any notion of altering or reversing the current economic program, asserting the opposition's lack of parliamentary influence to effect such changes.

With the successful conclusion of the second review, Minister Semasinghe outlined the potential for Sri Lanka to advance in bilateral debt and bond restructuring endeavors.

He highlighted the prospect of progressing to the next phase of debt restructuring, particularly with key stakeholders such as the official creditors' committee, China, and the Paris Club, as a significant outcome of the decision.