Sri Lanka Looks To Reassess IMF Program

COLOMBO (News 1st); The new Sri Lankan government announced the need to revisit the IMF-supported program. 

"While the IMF delegation arriving tomorrow will not engage in detailed discussions, a preliminary meeting with the newly elected President will take place to outline the future direction of the program," said Minister Vijitha Herath, the Cabinet Spokesperson on Tuesday (1).

By the end of this month, the Governor of the Central Bank, the Finance Secretary, and the President's Senior Economic Affairs and Finance consultants will travel to New York to discuss the structural aspects of the program with the IMF.

Minister Herath clarified that, contrary to previous claims by the former government, no final agreement has been reached with the International Sovereign Bondholders. Although the talks had advanced to the final stages, a conclusive agreement was not achieved. The final decision on this matter is expected to be made during the upcoming meetings at the IMF headquarters.

The Minister reiterated the government's consistent criticism of the method of restructuring domestic debt, a position they continue to uphold. This issue will be a key point in future discussions. The government will also seek necessary reports from the Justice Ministry to ensure the legal framework supports this process.

A high-level IMF team led by Krishna Srinivasan, Director for the Asia Pacific Department, will be visiting Colombo October 2-4, said an IMF spokesperson on Monday (30).

The delegation will meet with President Anura Kumara Dissanayake and the new economic team to discuss latest economic developments and economic reforms under Sri Lanka’s economic program supported by the IMF.

The team will communicate at the end of the visit, the spokesperson said.