IMF Agreement to be Inked Next Week: President

by Staff Writer 22-11-2024 | 10:44 AM

COLOMBO (News 1st) -

President Anura Kumara Dissanayake has confirmed that the agreement for the next tranche of Sri Lanka's International Monetary Fund (IMF) program will be signed this week.

Speaking at the inaugural session of the 10th Parliament, the President stressed that there is no room for error in managing the nation’s economy, and highlighted the importance of careful decision-making in economic matters.

"The current economy leaves no room for mistakes. Therefore, every delicate aspect must be carefully considered and addressed in economic management," the President stated. "We have realized that in a country bound by an agreement with the International Monetary Fund, breaking that agreement offers no path forward.

During the Presidential and Parliamentary Elections, the government had pledged to manage the economy in line with IMF parameters. Following a delay due to the elections, the IMF delegation arrived in Sri Lanka on November 17, 2024, and extensive discussions have been ongoing.

The President announced that a staff-level agreement with the IMF is expected to be signed on Sunday (23) marking a crucial step in Sri Lanka’s ongoing partnership with the IMF.

In his speech, President Dissanayake also addressed the issue of debt restructuring, emphasizing that such proposals should not be debated over their merits or drawbacks, but accepted as the current reality. "A common agreement has been reached on bilateral loans, and we are prepared to enter into separate agreements with each country accordingly," he said. "We have also reached an initial agreement on borrowing from the international sovereign bond commercial market, and we hope to complete this process by the end of December.

While acknowledging the importance of these steps in stabilizing the economy, the President stressed that they would not be sufficient to address the deep-rooted challenges facing the nation. "It is essential that we adopt a new economic strategy to overcome the collapse of our current economic structure," he said.