Reforms Led To Stable Economic Policy : Jeevan

COLOMBO (News 1st); Sri Lankan Minister Jeevan Thondaman speaking to international media on the sidelines of the World Economic Forum in China said Sri Lanka has made reforms that lead to a stable economic policy.

He also said that monetary benefits, in terms of a loan or grant assistance, must entail transparency and accountability.

Jeevan Thondaman, Sri Lanka's Minister of Water Supply and Estate Infrastructure Development, emphasized the historical context of Sri Lanka's interactions with the International Monetary Fund (IMF), noting that the country has approached the IMF nearly 16 to 17 times without fully completing a restructuring program.

He remarked, "This is the first time we've actually taken reforms that lead to stable economic policy and fiscal sustainability. Previously, Sri Lanka tried to be a populist state without generating enough revenue from state-owned enterprises."

He illustrated the issue by pointing out that, despite a population of 22 million, the country employs 1.5 million government servants, whereas only 400,000 are needed.

"All that is being paid for by the taxpayers. We needed to isolate politics from our fiscal policies, and that's exactly what we did," Thondaman said.

The Minister highlighted significant achievements in debt restructuring, including agreements with China for $4.2 billion and with the Paris Club and other creditors for approximately $5.8 billion.

"The fact that we were able to achieve this is due to the creditors' confidence in Sri Lanka's pathway to recovery," he stated.